With the vaccination roll out gathering speed, we should have reasons to be positive. With the over 80s, those in care and those who provide that care taking their turn, and with the military there to accelerate the delivery, we have much to look forward to in 2021.
The flip side of this will be the need to move Government policy from one of support to one of paying for that support. Rumours and “Sources” statements build around the March budget being altered from a tax budget to a spend and support budget. Only time will tell, and of course; this is outside of our control.
Funding has often been a key consideration for many businesses, and whilst this will remain, the need to be innovative on funding and cash management has never been greater.
The deferred VAT which is due in March 2021 can be deferred over 11 payments, provided it is paid by March 2022, and will no doubt help many business, but there will surely be a need to find other methods of finance.
Next Wednesday we are running a business resilience webinar that will cover these topics; the link to register is here: Business Resilience webinar 20 January.
And of course, funding is not just provided through a bank or deferment of taxes; the use of Research & Development (R&D) tax credits has proved a vital source of cash to many businesses, which, at this current time, can be very welcome.
Whilst R&D tax credits can be claimed in many industry sectors, a particularly exciting area of increased use at the moment is in the food and drink space, with its supply chain right through to agriculture.
The agriculture sector is needing to be highly innovative, with decarbonisation a key aim as the drive intensifies towards reducing the impact of farming on the climate via improved production methods. Our food and drink team would welcome any conversation on whether a project would qualify or not.
The Equity markets have remained very strong through Covid. Those businesses with a growth story or an exciting new project and needing funding could well benefit from the finance provided from equity, but also from sector skill and the expertise these people often bring.
Private equity is usually innovative on how the funding is deployed and understands the need for personal de-risking of founders, which can be a positive combination for many.
Finally, just to remind you that we are here to support you with your business, so if you need help in maximising the opportunities, or if you are feeling cashflow or trading pressure, please get in touch, and also check out our Business after Covid-19 Transition Hub together with our knowledge hubs.
Webinar 20 Jan, 11am: Business resilience – How understanding and planning for risks is crucial to the success of your business
Join our Restructuring Team who will be offering guidance and advice on steps you can take to future-proof your business. The webinar will be hosted by Charles Davey and colleagues.
Chancellor’s Economic Update 11 January
Chancellor Rishi Sunak used his January Economic Update as a reminder of what existing government support is available.
R&D Tax Credits for the Food and Drink sector
Developing new products requires investment and carries real risk. The R&D Tax Credit regime can help mitigate some of that risk with additional tax relief or a repayable tax credit.
Innovation Grants – points to consider
If you’re considering a grant application to bodies such as Innovate UK as a means to fund your investment, there are four key points to think about.
VAT Construction Reverse Charge starts March
From 1 March, the VAT treatment of some supplies in the construction industry will change. This will have a cash flow impact for contractors and sub-contractors.
| Can I spread my self-assessment tax bill? As we near 31 January, HMRC is offering a Time to Pay arrangement to help with your cash flow. |
Reminder: Have you claimed the third grant under the Self-Employment Income Support Scheme
Claims must be made by 29 January.
Check out our ever-evolving checklist of key dates and deadlines
The latest deadlines updated for January 2021.