Covid-19

The UK’s economy is ‘still stuck in first gear’, with many businesses operating at half their pre-coronavirus (COVID-19) capacity, according to the British Chambers of Commerce (BCC). The BCC’s Coronavirus Impact Tracker found that over half of businesses were suffering from reduced demand. In fact, customer demand and possible future local lockdowns were rated the two top obstacles to maintaining day-to-day operations. A third of firms said they intend to make redundancies over the next three months, with 13% of…

The Financial Reporting Council (FRC) has urged companies to provide more detailed disclosures on the impact the coronavirus (COVID-19) has had on their firm. In a new review, the FRC stated that although companies provided sufficient information to enable individuals to understand the impact COVID-19 has had on their performance, position and future prospects, some companies would have benefitted from ‘more extensive disclosure’. The Council has reminded companies that they should apply existing accounting policies for exceptional and other similar…

Coronavirus Job Retention Scheme (CJRS) claims for periods ending on or before 30 June 2020 must be made by 31 July 2020, HMRC has reminded employers. Employers and agents must submit all CJRS claims for periods ending on or before 30 June 2020 by 31 July 2020. After this date it will not be possible to make claims for these periods. Employers need to have made a claim on or before 31 July to be able to make a claim…

The coronavirus (COVID-19) lockdown has negatively affected young people’s labour market outcomes, according to a report published by the Institute for Fiscal Studies (IFS). The report, which was funded by the Turing Institute, found that the COVID-19 pandemic threatens to ‘severely disrupt’ young workers’ career progression. It also suggested that the economic impacts of the pandemic on young workers may last well beyond the easing of the lockdown. The report revealed that over the last decade, young people starting out…

Businesses groups have given a cautious response to the easing of lockdown restrictions in England announced by Prime Minister Boris Johnson last week. Josh Hardie, Deputy Director General at the Confederation of British Industry (CBI), said: ‘Businesses know the return to offices must not risk an infection spike. Firms can be knocked down once, not twice. This announcement marks a welcome change in tone, but changing behaviour and confidence will take time. ‘Close collaboration between government, employers and unions – alongside excellent…

UK businesses have now borrowed over £46 billion through the government-backed schemes that are helping firms during the coronavirus (COVID-19) crisis, according to the latest figures from the Treasury. In total, £46.3 billion has now been lent to over 1.1 million businesses through either the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) or the Coronavirus Large Business Interruption Loan Scheme (CLBILS). The BBLS remains the most widely used of the support schemes available, with over…

The rise in homeworking caused by the coronavirus (COVID-19) pandemic has created new vulnerabilities for criminals to exploit, according to research from cyber experts CyberCube and insurance broker Aon. According to the report, homeworking has exposed new access points for cyber criminals to gain entry to corporate systems, including domestic PCs, laptops and Wi-Fi routers. It has also led to a diminution in employees’ distinction between work and personal emails and an increase in the use of devices with insecure…

Following the reduction in the rate of residential Stamp Duty Land Tax (SDLT), the Welsh government has announced that it will reduce the rate of Land Transaction Tax (LTT). LTT is payable by the purchaser of residential or non-residential property in a land transaction occurring in Wales. SDLT is payable on land transactions in England and Northern Ireland, and Land and Buildings Transaction Tax (LBTT) is payable on land transactions occurring in Scotland. From 27 July 2020, the starting threshold…

The Scottish government will reduce the rate of Land and Buildings Transaction Tax (LBTT) following a similar reduction to the rate of residential Stamp Duty Land Tax (SDLT) announced by Chancellor Rishi Sunak in the recent Summer Economic Update. LBTT is payable by the purchaser in a land transaction occurring in Scotland. SDLT applies to land transactions in England and Northern Ireland, and Land Transaction Tax (LTT) applies in Wales. The threshold at which residential LBTT is paid will be…

A government-backed scheme to offer free online advice to help small businesses bounce back from the coronavirus (COVID-19) has been launched. The Recovery Advice for Business Scheme gives small firms access to free, one-to-one advice with an expert adviser to help them through the COVID-19 pandemic and prepare for long-term recovery. Advice offered includes bespoke, specialist assistance from accountancy, legal and advertising experts, as well as marketing, recruitment and tech advice to help businesses adapt to difficult circumstances and bounce…