In the Budget presented on 3^rd March 2021, the government announced that up to 130,000 small-to-medium sized businesses will get free training, advice and discounted software, through the new Help to Grow scheme. There are two programmes within the scheme – find out how they could help your business, below.

• Up to 50% off digital tools for small businesses.
• Free advice on improving your business’s digital capabilities.
• 90% off management training covering strategy, marketing, finance and more.

The Help to Grow: Digital programme

A new programme to give you the digital tools and knowledge needed to boost your business’s performance.

Lots of trades businesses have moved online to reach new customers during the coronavirus (COVID-19) pandemic. The Help to Grow: Digital programme aims to help SMEs become more efficient through the use of digital software.

How the programme works

From Autumn 2021, small businesses can get free, impartial advice on how technology can help their business, through a new online platform. Plus, they’ll be able to apply for a voucher for 50% off the cost of productivity-enhancing software, worth up to £5,000.

We’ll put more details about the online platform and the list of approved software available in this blog post, once they’re provided by the government.

Benefits for your business

Find out how to manage your accounts and finances digitally. Many finance-related processes that you’re required to do for your business are moving online. An example of this is the compulsory Making Tax Digital service, which requires tradespeople to use digital records and software to submit VAT returns. So, it’s important that you get up to speed with the latest financial management software.

Pay less for the latest digital tools. Technology can help businesses operate more efficiently, which is particularly important for busy tradespeople. Through the scheme, you can access innovative digital tools for less. 

Eligibility criteria

The government will publish the full eligibility criteria this summer. However, they have said that vouchers are expected to be available to UK businesses that:

• Are registered at Companies House.
• Have between 5 and 249 employees.
• Have been trading for more than 12 months.
• Are buying the discounted software for the first time.

We’ll update this blog post with the final eligibility criteria once it’s available.

How to apply

Applications for the scheme aren’t open yet. However, you can register your interest in the scheme today, by entering your Companies House number into the portal on Gov.uk.

The Help to Grow: Management programme

A new Executive Development programme helping senior leaders in SMEs improve their skills around leadership, innovation, marketing, financial management, responsible business and more.

How the programme works

From June 2021, university business schools around the UK will be providing a 3-month training programme for 30,000 small businesses, through the Help to Grow: Management programme. Training will be made up of a practical curriculum featuring:

• 8 2-hour sessions online held by small business experts.
• 4 interactive case study workshops.
• 1:1 support from a business mentor.
• Peer networking, including group calls where you can share experiences with other small business leaders.
• An Alumni Programme, which includes business clinics, events with speakers and networking events.

The government will cover 90% of the cost of the programme. Participants will need to pay £750 to take part.

Benefits for your business

You can do it whilst working full time. The training has been designed to fit alongside your normal work.

You’ll get a personalised business growth plan at the end. Plus, your mentor will give you expert support to help you develop your growth plan.

Learn how to build your business resilience to future shocks. The pandemic has created many challenges when it comes to running a business. That makes it even more important that you develop your business resilience.

Eligibility criteria

UK SME businesses from any sector (excluding charities), that have:

• Been operating for over 1 year.
• Have between 5 and 249 employees.

The participant from the business must be a decision maker or senior management team member, such as the Chief Executive or Finance Director. They must also commit to completing all sessions in the programme.

How to register

Applications for the scheme aren’t open yet. In the meantime, you can register to be notified when a programme opens near you on the Small Business Charter website.

Interested in more government support available now? We’ve put together a full guide to the financial support available for construction businesses on our Trade Advice Centre.

The post Help to Grow scheme: Discounted digital tools and management training for SME businesses appeared first on Rated People Blog.

On 3^rd March 2021, Chancellor Rishi Sunak laid out the government’s spending plan for the year in the Budget. To boost the UK’s housing market during the coronavirus (COVID-19) pandemic, Sunak has extended the existing stamp duty holiday and announced a new mortgage guarantee scheme. Find out how these initiatives work and how they could affect you if you’re buying a home, below.

The stamp duty holiday has been extended

Save up to to £15,000 in tax when you’re buying a new home*

In July of last year, the governments of the UK put a temporary stamp duty holiday in place until the end of March 2021. For homebuyers in England and Northern Ireland, this meant that they didn’t have to pay stamp duty on the first £500,000 of their property’s value, up from the pre-COVID threshold of £125,000. However, Sunak has now extended the stamp duty holiday until 30^th September 2021. So, people buying a residential property up until then can still save money on the cost of their new home.

How does the extended stamp duty holiday work?

From 8^th July 2020 to 30^th June 2021

No stamp duty will be paid on the first £500,000 of a residential property’s value. This applies to everyone – regardless of whether you’re a first-time buyer or you’ve owned property before.

From 1^st July to 30^th September 2021

No stamp duty will be paid on the first £250,000 of a residential property’s value. The existing special threshold of £300,000 for first time buyers applies from this date. This includes those buying through a shared ownership scheme.

From 1^st October 2021 onwards

The standard, pre-coronavirus threshold of £125,000 comes back into place.

On 3^rd March, the Welsh government also extended their stamp duty (known as Land Transaction Tax [LTT]) holiday, which was due to end on 31^st March 2021. However, the new extension means that buyers in Wales won’t pay any LTT on the first £250,000 of a residential property, from now until 30^th June 2021. From 1^st July 2021, the LTT threshold will go back to the pre-coronavirus level of £180,000. Read more FAQs about the Welsh LTT holiday in our guide to moving house in lockdown.

How will the stamp duty holiday benefit potential homebuyers?

The stamp duty holiday extension is good news if you’re in the process of buying a new home but won’t complete your purchase by the end of March 2021, as it means you’ll still benefit from stamp duty savings.

The stamp duty holiday in Scotland wasn’t extended in the Spring Budget. Read more about paying stamp duty during the coronavirus pandemic in our guide to moving house in lockdown.

*This is Money

There’s a new mortgage guarantee scheme

Secure a mortgage without needing an unaffordable deposit

Since March last year, many mortgage lenders have stopped offering low-deposit mortgages (also known as high loan-to-value [LTV] mortgages), due to financial concerns around the coronavirus pandemic. As a result, the amount of low-deposit mortgages available to homebuyers has hit its lowest monthly level in years, according to government research.

So, to encourage lenders to start offering low-deposit mortgages and therefore help more homebuyers secure a mortgage, the government has created a new mortgage guarantee scheme.

How will the mortgage guarantee scheme work?

The mortgage guarantee scheme allows buyers to get a 95% mortgage with a deposit of 5%.

The government will give mortgage lenders on the scheme a guarantee that partially protects them from losing money due to non-payments. Under this guarantee, the government will compensate the mortgage lender on the amount of the mortgage that’s over 80%, if the homeowner fails to pay on their mortgage at some point.

So, anyone looking to buy a home of up to £600,000 will likely be able to find a mortgage of between 91 and 95%, with a deposit of 5%. This applies to mortgages on new build and existing homes. Plus, both first-time buyers and existing homeowners can take advantage of this scheme, as long as they meet the eligibility criteria.

Eligibility criteria for the government’s mortgage guarantee scheme

The mortgage must:

• Be a residential mortgage (not for a second home) and not buy-to-let.
• Have a loan-to-value of between 91% and 95%.
• Be taken out by an individual or individuals, not an incorporated company.
• Originate between the dates of the scheme (April 2021 to December 2022).
• Be a repayment mortgage, not interest-only.

The property must:

• Be in the UK.
• Be worth £600,000 or less.

The buyer must:

• Meet the usual requirements for getting a mortgage. This can be determined through a credit score test and loan-to-income ratio for example.

The scheme will be open for new mortgage applications from April 2021 to December 2022.

How will the mortgage guarantee scheme benefit potential homebuyers and current homeowners?

It seems that the scheme is off to a good start! The UK’s five largest banks (Santander, Barclays, Lloyds, HSBC and NatWest) have signed up to take part, according to the Financial Times.

For 75% of renters, the biggest barrier to buying their first home is not having enough savings for a deposit, rather than not being able to afford mortgage repayments, according to the Bank of England. So, if you’re a first-time buyer, the mortgage guarantee scheme means you won’t have to save as much money for your deposit as you would’ve earlier on in the pandemic.

For existing homeowners looking to sell their existing property and move up the property ladder, the mortgage guarantee scheme will give them the opportunity to get a better deal when it comes to remortgaging.

• Moving into a new home during the coronavirus pandemic? There’s tradespeople available on Rated People to help you at every step of the process – including removal companies, cleaners, decorators and more.
• Governments around the UK have confirmed that house moves can still go ahead during the coronavirus lockdown. Read the exact rules in our coronavirus FAQs for homeowners.

The post Stamp duty and mortgage guarantees: How the government’s Budget affects homebuyers appeared first on Rated People Blog.

Last updated: 3^rd March 2021

In the latest Winter Economy Plan, the government has included measures to support UK businesses that are facing decreased demand or are legally required to close their premises, due to the coronavirus (or COVID-19) pandemic. We’ve summarised the new coronavirus government support initiatives available for small and medium-sized (SME) trades businesses below.

Coronavirus Self-Employment Income Support Scheme (SEISS) extension

What is it?

The government has extended the SEISS, which was due to end in November 2020. In the Winter Economy Plan, the government announced that the SEISS now includes a third and fourth direct cash grant. In the Budget on 3^rd March 2021, the government announced a fifth grant.

Applications for the third grant (worth up to £7,500) have now closed. However, applications for the fourth and fifth grants will open soon.

The fourth SEISS grant

You’ll get 80% of 3 months’ average trading profits, up to a cap of £7,500. This grant will cover the three month period from February to April 2021.

Eligibility for the fourth SEISS grant will be based on the Self Assessment tax return that you submitted on 2^nd March 2021, for the 2019 to 2020 tax year. As this grant takes 2019 to 2020 tax returns into account, it means that it’ll be open to anyone who became self-employed in the 2019 to 2020 tax year.

The fifth SEISS grant

The fifth grant will cover the period from May to September 2021. The amount of the fifth grant that you’ll get will depend on how much your turnover has reduced by from April 2020 to April 2021.

• Those whose turnover has reduced by 30% or more: You’ll get 80% of 3 months’ average trading profits, capped at £7,500.
• Those whose turnover has reduced by less than 30% or more: You’ll get 30% of 3 months’ average trading profits, capped at £2,850.

Who’s eligible?

Anyone who’s self-employed, or a member of a partnership, that:

1. Has trading profits of less than £50,000

HMRC will look at your 2019 to 2020 Self Assessment tax return to confirm this. Your trading profits also need to be equal to your non-trading income, at a minimum.

2. Traded in the 2019-2020 and 2020-2021 tax years

You must have submitted your Self Assessment tax return for the 2019 to 2020 tax year by 2^nd March 2021.

3. Is impacted by coronavirus

You must be currently trading, but are impacted by reduced demand caused by coronavirus. Or, you have been trading but are temporarily unable to do so due to coronavirus.

4. Makes certain declarations

You must declare that you intend to continue to trade, and that you have reasonable belief there will be a significant reduction in your trading profits caused by reduced business activity, capacity, demand or an inability to trade, due to coronavirus.

How can I access it?

Whilst applications for the third grant are now closed, applications for the fourth grant will be open from late April 2021. If you’re eligible, HMRC will contact you in mid-April to give you a personal claim date, that you can make your claim from. They’ll also release further info about the fifth grant in due course – we’ll keep this blog post up to date.

Find out more information about the SEISS on Gov.uk.

Coronavirus Bounce Back Loan Scheme extension

What is it?

The Bounce Back Loan allows SMEs to borrow between £2,000 and up to 25% of their turnover, up to a maximum of £50,000. The government has now introduced a new Pay As You Grow option, to allow all businesses that used the scheme to repay their loan over a period of up to 10 years, instead of the 6 years initially offered. This will cut average monthly repayments by almost half.

The extension also allows businesses to temporarily move to interest-only payments for periods of up to six months, up to three times. Repayments can also be paused entirely for up to six months, but only once and only after you’ve made six payments. 

Finally, the extension allows businesses that already have a Bounce Back Loan but borrowed less than they were entitled to, to top up their existing loan to their maximum amount. They must request a top-up by 31^st March 2021.

If you haven’t applied for a Bounce Back Loan yet, then the application deadline has been extended until 31^st March 2021.

No repayments need to be made for the first 12 months of the loan, and the government will cover the first 12 months’ interest payments. After 12 months, you’ll be charged a fixed 2.5% annual interest. You can read more details about the scheme on our Trade Advice Centre.

Who’s eligible?

UK businesses established before 1^st March 2020, that have been negatively affected by coronavirus. Banks, insurers, reinsurers (but not insurance brokers), public-sector bodies and state-funded primary and secondary schools are excluded.

If your business was classed as a business in difficulty on 31^st December 2019, then you will also need to confirm that you’re complying with additional state aid restrictions.

You can’t apply for the loan if you’re already claiming the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the COVID-19 Corporate Financing Facility.

How can I access it?

Applications are open until 31^st March 2021. Fill in the online form on the British Business Bank website to apply.

Coronavirus Business Interruption Loan Scheme (CBILS) deadline extension

What is it?

CBILS is a finance scheme offering SMEs up to £5 million. The government has extended the repayment term to 10 years as part of the Winter Economy Plan, to help businesses that may be otherwise unable to repay their loan. The first 12 months of interest payments and fees are also covered by the government. The application deadline has also been extended to 31^st March 2021.

The maximum length of the facility depends on the type of finance you apply for:

• Up to 3 years for overdrafts and invoice finance facilities.
• Up to 6 years for loans and asset finance facilities.

Who’s eligible?

UK-based businesses with an annual turnover of less than £45 million. You must also show that your business:

• Would be viable, if not for the COVID-19 pandemic.
• Has been adversely impacted by the coronavirus.

If you’re applying to borrow £30,000 or more, then you must confirm that your business wasn’t classed as a business in difficulty on 31^st December 2019.

Use the British Business Bank’s CBILS SME Checklist to see if you may be eligible for a loan. Banks, insurers, reinsurers (but not insurance brokers), public-sector bodies and state-funded primary and secondary schools aren’t eligible for the Coronavirus Business Interruption Loan Scheme.

How can I access it?

Applications have been extended to 31^st March 2021. To apply, visit the British Business Bank website. You’ll need to tell your lender how much you’d like to borrow, what the money is for and how long you’d like to pay it back over. Find out more about the documents you need to provide on Gov.uk.

Find out about more coronavirus government support available on our Trade Advice Centre.

New payment scheme for VAT deferrals

What is it?

Businesses that deferred their VAT due between 20^th March and 30^th June 2020 now have the option to spread their payments into between 2 and 11 smaller, interest-free instalments until the end of March 2022, by joining the new payment scheme. This replaces the original deadline of 31^st March 2021.

If you chose to defer your VAT payment, then you need to do one of the following:

• Join the VAT deferral new payment scheme by 21^st June 2021, on Gov.uk.
• Pay your VAT bill in full, on or before 31^st March 2021 (if you’re able to). You can do this on Gov.uk.
• Contact HMRC on 0800 024 1222 by 30^th June 2021, if you need more help with paying.

You must meet one of these deadlines in order to avoid interest or a penalty.

Who’s eligible?

Businesses that had a VAT payment due between 20^th March and 30^th June 2020, have deferred VAT left to pay and opt into the new payment scheme.

How can I access it?

Opt in to the new payment scheme by 21^st June 2021. You can do this on Gov.uk.

Enhanced Time to Pay service for Self-Assessment taxpayers

What is it?

An additional 12-month deferral for Income Tax payments that were due on 31^st July 2020 and 31^st January 2021. This means that these Self-Assessment tax payments won’t need to be paid until January 2022. There’s no penalty for using this service.

On 1^st October 2020, HMRC also announced that the self-serve Time to Pay tax liabilities limit has also been increased to £30,000. Find out more information about this on Gov.uk.

Who’s eligible?

Taxpayers with up to £30,000 of Self-Assessment liabilities.

How can I access it?

Use HMRC’s Time to Pay service to secure a payment plan now. First, file your 2019 to 2020 Self Assessment return as soon as possible, so HMRC knows how much you owe. 72 hours after you’ve filed your return, you can set up a Time to Pay instalment arrangement with HMRC. If you owe up to £30,000, then you can do this online, up to 60 days after 31^st January 2021. Find more info on making Self Assessment payments on Gov.uk.

Coronavirus Job Support Scheme

What is it?

The Job Support Scheme is a grant scheme replacing the Coronavirus Job Retention Scheme (also known as the furlough scheme), to help employers pay towards the usual wage costs of employees that are working shorter hours. The amount of grant that an employee will get will be calculated based on their normal salary, up to a maximum of £697.92 per month.

Employers will need to pay their staff for the hours that they do work. For each hour not worked, the government and employer will pay one third of the employee’s lost salary each. In total, the employee will receive 77% of their pay, where the government contribution hasn’t been capped.

On 31^st October 2020, the Coronavirus Job Retention Scheme was extended until December 2020. It was then extended again, until the end of April 2021. The scheme was most recently extended until 30^th September 2021, in the Budget held on the 3^rd March 2021. This means that the Job Support Scheme has been postponed until further notice.

Who’s eligible?

Employees that are working a minimum of 33% of their usual hours. Those on redundancy notices won’t be eligible.

To be eligible, businesses must:

• Have created and started a UK PAYE scheme on or before 23^rd September 2020.
• Be enrolled for PAYE online.
• A UK, Channel Island or Isle of Man bank account.

You don’t have to have previously claimed through the Coronavirus Job Retention Scheme to claim the Job Support Scheme (once it’s open).

How can I access it?

The employer will be reimbursed in arrears for the government’s contribution. Further information on how to claim hasn’t been released yet. Keep an eye on this article for updates. If you need support in the meantime, read more about the Coronavirus Job Retention Scheme, which is in place until the end of September 2021, on our Trade Advice Centre.

The team at Rated People are working hard to keep new job leads coming in. We’ve even seen a rise in demand for gardeners, painters, carpenters and more! Check out the latest job leads. 

For more information on the coronavirus government support available for construction businesses during the pandemic, head to our Trade Advice Centre.

Note: Countries may approach the different phases of lockdown differently. This guidance is in line with the UK government’s advice and is being followed in England. See the specific government websites for any differences.

Note: You must follow the restrictions for your local area. Find out the local restriction tiers for each area in England on Gov.uk. You can also view the UK government guidelines on Gov.uk.

Note: The government has confirmed that there is no limit to the group size when you are meeting or gathering for work. But, workplaces should be set up to meet the COVID-secure guidelines – follow the government’s guidance on how to return to work safely.

For more coronavirus support, visit our Trade Advice Centre:

• Coronavirus: FAQs for tradespeople
• Coronavirus: Government support for construction businesses
• Working in homes safely during COVID-19: A guide for tradespeople
• Coronavirus: How to keep safe whilst working
• Coronavirus: Staying safe whilst working on a construction site
• 6 lockdown lessons about running a business
• Coronavirus: Digital marketing tips to make your small business stand out
• Coronavirus: Which builders’ merchants are open to tradespeople?

The post Winter Economy Plan: The latest coronavirus government support for tradespeople appeared first on Rated People Blog.