Insights – April 2021
Today marks a significant step forward in our move out of lockdown as many of our retailers re-open their doors to the public and outdoor hospitality returns. Coming into the office this morning, it was refreshing to see some of Dungannon’s independent retailers already with their shutters up shortly after 7.30am, with messages of “Hello” and “Welcome Back” in their freshly dressed window displays. We wish our business clients and acquaintances every success as you re-open your doors and we encourage everyone to #supportlocal where you can.
We bring the following key focus points to your attention this month:
1. Super deduction for capital spend by limited companies
From the 1st of this month, the additional 30% capital allowances available to limited companies buying qualifying plant and machinery can now be claimed against taxable profits. This means that a limited company spending say £50K on a new piece of kit will now receive additional relief of £15K against taxable profits. The scheme is available to limited companies only and there are certain conditions which must be met (including that the scheme does not extend to second hand equipment). For further information contact Claire McElduff.
2. New Recovery Loans now available
The much talked about Bounce Back loans and Coronavirus Business Interruption Loans (“CBILS”) schemes closed to new applications on 31st March. The replacement scheme is now open and available. The new scheme is available to all businesses and, like the previous two schemes, is being offered by many of the main banks. Borrowers who availed of either of the first schemes are not excluded from applying for this new loan product – your bank will however assess suitability and affordability. The scheme is similar to CBILS in that the government guarantees 80% of the lending, which should mean that the loans are more accessible. You, however, as the borrower remain liable for all the debt, and banks will be pursuing customers who default using their normal recourse channels we expect. This new scheme is open until 31 December 2021. Speak to Gerard Gildernew if you wish to find out more.
3. New grants for manufacturing businesses
The Finance Minister this week announced the launch of £21M of support funding for manufacturing businesses in NI. Manufacturing businesses operating in premises with a Net Annual Value (NAV) between £15,001 and £51,000 will be eligible to receive an automatic grant of £25K. If you believe you are eligible and have not already heard about the scheme, contact Roisin McCrory in our office.
4. 4th SEISS Grant
You may by now have received notification from HMRC regarding your eligibility for the fourth SEISS Grant. HMRC were due to contact all eligible individuals by mid-April 2021, confirming the date when you can make your claim from (contact from HMRC would have been via email, letter or within your online service account).
Applications for this fourth grant should be made before 1 June 2021 and will be based on 80% of three months’ average trading profits (average trading profits will be based on your 2019/20, 2018/19, 2017/18 and 2016/17 submitted tax returns). This fourth grant which covers the period 1 February to 30 April 2021, will be capped at £7,500 and will be liable to income tax and NIC.
If you have not yet received HMRC notification, or require further information on this grant, contact Danielle McLernon.
5. JobStart scheme opens in NI
The Department for Communities (DfC) has recently opened a new scheme which provides employers with funding to cover up to 25 hours per week of a new employee aged between 16 and 24 years old who has been unemployed. As well as an initial upfront payment of £1,500, salary costs up to 25 hours will be met by DfC. The employer would then top up the remainder. Employers have to register for the scheme with DfC online. Contact Karen Conway for further information.
6. New Starts
We are pleased to welcome two new starts to the team this month. Reuben Young, a qualified Chartered Accountant, joins our Accounts & Audit team. Reuben will primarily work with limited company clients. Peadar Mullan also joined us in the past few weeks. Peadar joins us as Trainee Chartered Accountant.
Should you have any queries on any of the above, please do not hesitate to contact us on 028 8772 4697 or at firstname.lastname@example.org.
Take care and keep safe.
Everyone at Gildernew & Co.
Gildernew & Co. Ltd make every effort to ensure the accuracy of the information herein. However, no reliance should be placed on any of the above without seeking independent professional accountancy, legal and/or financial advice.
Posted on April 30, 2021