Monthly Archive July 30, 2021

Future Fund: Breakthrough scheme – everything your business needs to know

The Future Fund: Breakthrough scheme will help innovative technology companies grow and bring new products to market in the wake of the coronavirus pandemic, the Government has suggested.

The report comes after the initiative opened to new applications last week.

If your business is seeking investment, here’s what you need to know.

What is the Future Fund: Breakthrough scheme?

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Cloud app versatility delivers cost and time saving benefits

Cloud accounting has revolutionised the lives of hundreds of thousands of business owners.

Today it is reported that more than 50 per cent of small to medium-sized businesses are using the likes of Xero to keep their accounts in order.

For small businesses from hairdressers to garage owners and coffee shops, this can be a godsend, allowing them time to automate tasks to save time and money and all without the cost of installing expensive hardware and software.

In addition, there are a number of add-ons and apps that integrate into Xero to enhance what is already on offer. From apps that allow you to scan receipts to sending bulk payments effortlessly, Xero has an expansive list of add-ons ready to help automate your everyday tasks. They include:

Approval Max, which provides multi-role and multi-tiered review and approval automation workflows for purchase orders, bills, sales invoices and credit notes. It also helps you say goodbye to paper and email-based approval routing, ensuring fully automated approval workflows, spend control and regulatory compliance are all taken care of online.

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150,000 businesses owe HMRC £2.7 billion in deferred VAT payments

HM Revenue and Customs (HMRC) reported that 150,000 UK businesses have not yet made arrangements to pay back deferred VAT payments, and therefore owe the department £2.7 billion.

As of 30 June 2021, nine per cent of the total VAT deferred by businesses during the covid-19 pandemic were unaccounted for, reveals information released by HMRC through a Freedom of Information request (FOI).

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Brexit issues continue to impact British exporters, new figures reveal

Export sales to EU customers have fallen by “record” levels in the wake of the coronavirus pandemic, a major study has revealed.

But the report, published by the British Chambers of Commerce (BCC), suggest that export sales as a whole are rising as the nation edges towards recovery.

The figures – based on the responses of 2,800 businesses – are among the first to highlight the challenges British exporters are facing six months after the UK officially cut ties with the European Union.

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Taxman targets cryptoassets for Capital Gains Tax

As the old saying goes, in this world, nothing is certain except death and taxes.

So, it was inevitable that HM Revenue & Customs (HMRC) would turn its attention to cryptocurrencies.

This is an area of which we hear plenty about, but few know much about, except they are a digital currency with no bank or Government backing.

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‘Pingdemic’ – an increase in self-isolating threatens supermarket sales

The NHS app has told so many supermarket workers to self-isolate that some stores are now considering reducing opening hours or closing altogether.

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SMEs can benefit from Covid sick pay rebates

As Covid cases continue to rise again, small businesses in particular are faced with the extra cost of sick pay as employees fall victim to the virus.

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Businesses can still access the Recovery Loan Scheme

Businesses affected by the Coronavirus pandemic and its related economic impact can still access the Recovery Loan Scheme (RLS).

Launched in April, the new scheme follows on from the closure of applications for other Government loan schemes, including the Coronavirus Business Interruption Loan Scheme (CBILS).

Finance worth up to £10 million, backed by a Government guarantee is available in the form of:

  • Term loans
  • Overdrafts
  • Invoice finance
  • Asset finance

The finance facilities and loans available under the scheme range from three months up to six years, while overdrafts and invoice finance are available up to three years. The annual effective rate of interest, upfront fee and other fees cannot be more than 14.99 per cent.

The scheme provides lenders with a Government-backed guarantee against the outstanding balance of the facility.

However, the borrower always remains 100 per cent liable for the debt and must meet the costs of interest payments and any fees.

Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

Personal guarantees are not required for loans of less than £250,000 but can be for loans above this level at the lender’s discretion, although not over Principal Private Residences.

Unlike the previous COVID loan schemes, the RLS does not provide a 12-month ‘Business Interruption Payment’ from the Government.

Interest payments and capital repayments will commonly start a month after taking out a facility. However, it can vary from one accredited lender to another.

Crucially, businesses that have already accessed CBILS, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bounce Back Loan Scheme (BBLS) can still access the RLS, although, amounts borrowed under previous schemes could affect the amount they can borrow under the new scheme.

The RLS will close on 31 December 2021.

Business plan for industry confidence when lockdown ends

One of the UK’s leading business organisations has launched a six-point plan, aimed at instilling confidence, ahead of the country opening up after months of lockdown.

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CJRS – changes to payments and the furlough scheme

The Coronavirus Job Retention Scheme (CJRS) continues to support many businesses, who are reliant on the financial support it offers to cover the costs of staff on furlough.

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