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The Lowdown On New Financial Support For Trades

It can’t have escaped your notice that we’re now in a third lockdown and there have been some changes to the financial support that is available to tradespeople. So, here’s everything you need to know about the latest updates and extensions to government grants and schemes.

Furlough extension

The furlough scheme has now been extended until the end of April 2021, with the government continuing to cover 80% of an employee’s wages. This has been a lifeline for businesses who have seen a drop off in work. You can find more details here about how to apply and if you are eligible.

Self-employment income support scheme

This scheme has also been extended by the government, so if you’re self-employed, or part of a partnership, you may be able to claim this grant. If your business has been impacted by COVID-19 between the 1st November 2020 and 29th January 2021, then you may be eligible.

This grant is worth up to 80% of your average monthly trading profits for 3 months, with a cap of £7,500. This claim must be submitted on or before the 29th January 2021, so don’t wait too long! You can find out more here.

Vat deferral extension

This is an extension to the previous initiative that allowed businesses to defer their VAT payments until 31st March 2021. Businesses that are struggling to meet their payment schedule will now have until the end of March 2022 to payback any VAT payments that they deferred from 20th March to 30th June 2020 – completely interest free! This will give business owners the opportunity to opt for smaller payments over a longer period and hopefully make your cash flow a bit healthier in the long run.

If you think your business could benefit from this, then you’ll need to opt in to the scheme. However, if you are able to, or would like to, clear the payments by the original deadline of 31st March 2021, that’s ok.

Don’t forget, if you’re struggling to pay your VAT and need more time or further guidance, get in touch with your accountant or contact HMRC by phoning 0300 200 3835.

What am I eligible for?

Looking to find out a little more about if you or your business is eligible for one of the government’s schemes or grants? Here’s where you need to look:
If you are a business – check out this page.
If you are self-employed – check out this page.