The last 18 months have been a difficult time for small businesses up and down the country and with the pandemic still very much a threat to society, the next few months are looking to be just as unsure. This is due to lockdowns and social distancing guidelines, making it increasingly difficult for many businesses to remain open for business, and to continue to make a profit.
Due to how significant an impact the pandemic has had on individuals, businesses, and the economy as a whole, the UK government has created some initiatives that they hope will boost businesses across the board, including those businesses based within the home. However, if you are a small business owner then it may be difficult to know what help is available to you.
So here is a guide to 3 of the government’s key initiatives that you may be eligible for that can give your home-based business a much-needed boost.
Announced as part of Chancellor of the Exchequer Rishi Sunak’s 2021 budget, the super deduction allowance aims to significantly benefit small businesses by making it easier for business owners to invest money where it is needed the most.
The initiative is record-breaking from the UK government as it can reduce corporation tax bills by up to 130% for any business investment made in the next 2 years. Investments eligible include pieces of equipment and machinery, such as air compressors, security systems, fire alarms, and computer equipment. The government hopes that this will encourage continued investment in all businesses and improve cash flow issues for struggling businesses.
Help to Grow
Another UK government initiative announced by Rishi Sunak is the ‘Help to Grow’ initiative. This aims to provide additional digital and management training for small businesses to help improve efficiencies and boost productivity. This initiative takes the form of a 12-week programme for leaders who want to develop their strategic skills and further drive their company.
From employee engagement to marketing and financial strategies, the programme hopes to provide small businesses with the support and tools they need to weather the uncertain times ahead.
The Help to Grow: Digital Programme also aims to help businesses increase sales by making the most out of online platforms which is perfect for home-based businesses. While the programme isn’t completely free of charge, it is 90% government-funded to make it accessible to businesses of all sizes and profits.
Time To Pay Arrangement
Announced as part of the Chancellor’s winter statement, the ‘self serve’ Time to Pay (TTP) scheme allows self-assessment taxpayers to spread the cost of their tax via installments. This initiative comes after HMRC has set up a helpline for business owners to offer support to those struggling.
HMRC TTP arrangements are payment plans which are structured over a period of time and while usually they are not given out lightly by HMRC, the body has come to recognise that businesses may need them due to current circumstances.
While pre-COVID any TTP agreements which allowed for late payment of tax came with a 5% payment charge. But this fine is now being waived for the duration of the virus to help those struggling to meet the payment deadlines.
Therefore, if you are a small home-based business that is struggling in the aftermath of COVID-19 then be sure to check out some of these government initiatives to check out what you are eligible for and how they could help boost your business in a post-pandemic economy.
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