We feel now is not the right time for the Chancellor to increase corporate taxes or cut incentives for business owners, as this will do nothing to help the struggling hospitality and leisure sector to prepare for a post-pandemic bounce back.
We would hope that as many businesses within this sector have been forced to close for much of the last year, the following COVID related schemes will be extended:
VAT cut
- The VAT cut to 5%, which is due to come to end on 31 March 2021, will be extended hopefully for a further 12 months and it will be interesting to see any more ‘eat out to help out’ type schemes are announced once we start to emerge from the current lockdown
Business rates holiday
- That the business rates holiday will continue for the sector until March 2022.
Furlough scheme
- The current furlough scheme, which is due to come to an end on 30 April 2021, will continue until the summer, to help protect businesses and jobs.
Other possibilities:
Amend corporate tax loss relief rules
- The Chancellor could amend the current corporate tax loss relief rules to allow losses incurred during the pandemic to be carried back for a longer period than just one year, that may lead to a tax refund
Extend repayment period of Government backed loans
- The repayment period, for businesses within the sector, on Government backed loans could possibly be extended from 6 to say 10 years
Possible top up grant
- There could possibly be a further top up grant offered to businesses in the sector, following the grant announced at the beginning of January worth up to £9,000 per property
Changes to the annual investment allowance
- There is already an extension of the £1m Annual Investment Allowance limit to 1 January 2022, the Chancellor may possibly go further by increasing the limit, or perhaps make more structural costs eligible too.