In his Budget on Wednesday, Rishi introduced a number of new measures which did not make the headlines but we thought they were worth highlighting.
No-interest Loans scheme pilot – The Government will pilot a scheme which will provide up to £3.8m of funding to help vulnerable consumers who would benefit from affordable short-term credit to meet unexpected costs as an alternative to high-cost credit.
Recovery Loan Scheme – from 6 April 2021, the Government will provide lenders with a guarantee of 80% on eligible loans between £25k and £10m. The loans will be open to businesses who have already received support under the existing loan schemes.
VAT Deferral New Payment Scheme – this is open to businesses which took advantage of the scheme on VAT returns from 20 March 2020 to June 2020, who can use it to pay the deferred VAT in 11 equal payments from March 2021.
Combatting Fraud and error – HMRC to recruit a further 1,265 staff to combat fraud within the Covid support packages. The government will also significantly strengthen law enforcement for Bounce Back Loans.
Powers to tackle Electronic Sales Suppression – HMRC will have new powers to make ESS software an offence which will expose those attempting to hide transactions by using software.
Tackling promoters of tax avoidance – the existing rules and measures to tackle promoters of tax avoidance schemes will be strengthened.
Follower Notice penalties – Penalties charged to people using tax avoidance schemes will be reduced from 50% to 30% of the disputed tax. Should a tribunal decide that the taxpayer is disputing the tax unreasonably a further 20% will be charged.
Amendment to the Customs and Excise Management Act – which will introduce a penalty for anybody removing goods which have already been seized from any premises.
No changes to CGT rates – if you have any clients who are considering a solvent liquidation then please feel free to call us.
For further information on the above or regarding any aspect of insolvency, please telephone Stella and she will put you in touch with one of our insolvency professionals.
If your business has been affected by the pandemic and you would like some advice, please contact Stella. We can hold virtual meetings or face to face at any of our offices in Driffield, Grimsby, Hull, Scunthorpe or York, whilst observing the socially distancing guidelines. Our initial meetings are free and without obligation.