Home » Small business news roundup-11th December 2020

Small business news roundup-11th December 2020

Treasury to discuss COVID-19 grant for company directors

Reports suggest that the Government will be meeting with the 2 million company directors that were unsupported by COVID -19 funding schemes.

The Government is now putting together a grant-based rescue plan for the directors. This scheme aims to support entrepreneurs who rely on dividends for their income.

This new scheme will be called The Directors Income Support Scheme mainly for small actively trading companies. The scheme is like the Self -Employed Income Support Scheme covering three months,80 per cent of average earnings up to £7,500.

Only one directorship in the company with a higher income can apply for this scheme.

We will update you when more information is provided.

To find out more click here.

Landlords blocked from evicting small businesses for another three months

A huge relief comes to small businesses this week. The Government have put an extension “on not allowing commercial landlords to repossess independent shops, bars and restaurants”.

The pause was originally due to stop the end of December 2020, but the extension has now allowed another three months, lasting until the end of March 2021.

The extension will come as a huge relief to small businesses that are still closed due to the new tiering system.

The Government have named this the ‘final extension’ suggesting this is the last push of hope to allow small businesses to come to an agreement with their landlords.

For the full story, click here.

Home sales rise but slowdown expected next year

Sales of homes are continuing to rise ahead of the Christmas period, but surveyors have predicted this is expected to slow again next year.

The surge in sales was mainly people trying to benefit from the stamp duty holiday that was put in place earlier this year.

Reports from Halifax suggest the average property price has risen by more than £15,000 since June.

For the full story, click here.

Banks can re-start dividend payments, regulator says

UK banks are now able to pay shareholders dividends again, according to the Bank of England. This relaxation will allow banks to consider investors and whether they have enough reserves saved if there is an increase in bad loans.

Reports suggest that banks will be offering loans with the reserves they have saved, critics have questioned why banks would not wait to see the full impact of the current recession before taking on new investors.

For the full story, click here.

‘Tax the wealthy to pay for coronavirus’

Tax experts have suggested that having a one-off wealth tax will be the fairest way of repair the impact of the COVID crisis.

By taxing millionaire couples, an extra 1% above a £1m threshold could raise £260bn over five years.

The wealth tax commission has suggested the Government should consider a tax on the wealthy as this would be fairer than raising the tax on income or good purchased.

A Treasury spokesperson said: “We’re committed to fair and efficient tax system in which those with the most contribute the most”.

For the full story, click here.