Here’s what you need to know about getting your business through the rest of 2020

 

It feels like circumstances surrounding COVID-19 are changing almost daily, so it’s no surprise that many entrepreneurs are finding themselves both confused and concerned.

To help you make sense of things, we’ve cut the fat on the Government’s Winter Economy Plan and highlighted six points you should know.

Here’s how the new plans could impact you and your organisation.

New Job Support Scheme

Lasting six months from 1st November, this scheme is designed to protect viable jobs in businesses if you’re facing lower demand. It will only be available to employees who are working reduced hours due to less demand as a result of COVID-19.

As an employer, you will continue to pay staff for the hours they’ve worked. For the hours they haven’t worked, you and the Government will contribute two third of their equivalent salary. There is a cap of £697.92 per month per employee for this grant. All the information can be found here.

VAT Deferral instalments

It was originally announced that those deferring their VAT payment would have to pay it back in a lump sum at the end of March 2021. However, this is no longer the case. You now have the option of splitting it into smaller interest-free payments over an 11-month period. This may give you a bit breathing room when it comes to your business finances.

Tourism and Hospitality VAT extended

For all businesses within the tourism and hospitality sector, the 5% VAT rate has been extended until the end of March 2021. This is designed to offer further help to the likes of hotels, restaurants and more which have been particularly hard hit by the pandemic, and which are facing fresh hardships with restrictions on opening hours.

Government loan schemes

There has also been an extension placed on available loan schemes. Applications for the Coronavirus Business Interruption Loan Scheme, or CBILS, have been extended — as have applications for the Coronavirus Large Business Interruption Loan Scheme (CLBILS), Future Fund Scheme and Bounce Back Loans. All of these schemes have been extended to the 30th November to ensure that more businesses can benefit from this Government-backed support.

What’s more, CBILS lenders will also be able to extend the terms of the loans from a maximum of six years up to 10 years if it will help you to recover from the impact of the pandemic.

“Pay as you Grow”

Many business owners have been able to access the Bounce Back Loan Scheme in recent months, and these people will now be offered the choice of more time and greater flexibility when it comes to repayments.

Like CBIL loans, these loans can now be extended from six to 10 years, effectively halving the average monthly repayment. There are also options in place for those struggling to make repayments. You can choose to make interest-only payments, or even suspend repayments altogether for up to six months.

This new system as has been christened the Pay as you Grow repayment method, and it will not impact your credit rating.

Self-Employment Income Support Scheme

The Self-Employment Income Support Scheme has been extended until 30th April 2021 in order to support viable traders who are facing reduced demand over the winter months as a result of the pandemic. This will cover 20% of your average monthly trading profits through a Government grant up to a total of £1,875.

 

 

If you need advice and support for your business during this difficult time, get in touch with TEDCO Business Support today. Contact the team today by calling 0191 516 61 02 or drop us an email at hello@tedco.org.

What we offer

TEDCO offers one-on-one support provided by a dedicated team of business advisors and a range of pre start seminars available to clients who are taking the first steps into self-employment. This could be looking at an initial idea and developing it further, looking at how to start a business plan, business competitors, business marketing.

Are you eligible?

If you are looking to start and grow a business we’d love to hear from you. Our friendly team of experienced Business Advisors are on hand to take your call to discuss the support available.

Latest News

4 ways to turn your hobby into a business

4 ways to turn your hobby into a business

We all dream of doing what we love for a living. Here’s how to make it happen   Starting your own business has become the preferred option for many budding businesspeople who want to improve their work/life balance. While 2020 was a tough year for us all, it’s...

read more
How to set goals and stick to them

How to set goals and stick to them

Make 2021 the year you tick some key business goals off your list For the vast majority of businesses, the main goal of 2020 was simply to stay afloat. The uncertainty surrounding the COVID-19 pandemic threw everything into question and forced many companies to make...

read more
How to compete with big brands as a small business

How to compete with big brands as a small business

The time has come to level the playing field Life can be tough for small businesses, especially in 2020. This has been a difficult year for many small companies who have had to rethink and restructure in order to stay afloat during the COVID-19 pandemic. But if you’re...

read more

Latest News

4 ways to turn your hobby into a business

4 ways to turn your hobby into a business

We all dream of doing what we love for a living. Here’s how to make it happen   Starting your own business has become the preferred option for many budding businesspeople who want to improve their work/life balance. While 2020 was a tough year for us all, it’s...

read more
How to set goals and stick to them

How to set goals and stick to them

Make 2021 the year you tick some key business goals off your list For the vast majority of businesses, the main goal of 2020 was simply to stay afloat. The uncertainty surrounding the COVID-19 pandemic threw everything into question and forced many companies to make...

read more
How to compete with big brands as a small business

How to compete with big brands as a small business

The time has come to level the playing field Life can be tough for small businesses, especially in 2020. This has been a difficult year for many small companies who have had to rethink and restructure in order to stay afloat during the COVID-19 pandemic. But if you’re...

read more
6 tips for future-proofing your small business

6 tips for future-proofing your small business

If 2020 has taught us anything, it’s that nothing is set in stone. That’s why thinking ahead is so important for small business owners. With the end of the year fast approaching, now is a great time to reassess your business goals and think about the future. Whether...

read more

Telephone

0191 516 6102

Address

TEDCO Business Support Ltd,
North East Business & Innovation Centre, Wearfield, Enterprise Park East, Sunderland,
SR5 2TA

Tedco Social

Follow us on your favorite
social media channels below:

8 + 3 =

©2018 TEDCO Business Support Ltd. All Rights Reserved. View our privacy policy Company Number: 08568533 | TEDCO Business Support Ltd | VAT No. 169 8629 44 GB. North East Business and Innovation Centre (BIC) Wearfield, Enterprise Park East, Sunderland, SR5 2TA, United Kingdom.