Whether you are a family run business, a large chain or corporate sized operation, our team of leisure and hospitality specialists can help you to make your business more efficient and advise you on mitigating your financial and insurance risks. Read our latest newsletter for those working and operating in the leisure and hospitality sector.
scruttonbland.co.uk
NEWSLETTER HOSPITALITY
Government support is changing - make sure you’re up to date
2 | S C R U T T O N B L A N D | L E I S U R E A N D H O S P I T A L I T Y
About us Whether you are a family run business, a large chain or corporate sized operation, our team of leisure and hospitality specialists can help you to make your business more efficient and advise you on mitigating your financial and insurance risks.
Running a hospitality business can bring its own set of risks, from sorting out public liability insurance in case a member of the public is injured or harmed on your premises, to ensuring that you have your payroll and tax payments set up correctly. Our in-house teams are here to support you, helping you to get your financial obligations under control, advising on ways that may bring operational efficiencies and leaving you free to create a wonderful hospitality experience for your customers.
Our aim with these newsletters is to provide interesting and relevant
information to businesses operating in the leisure, tourism and hospitality sectors. We already work with many clients in these industries and have extensive knowledge and experience of the issues they are currently facing across our region.
3 | S C R U T T O N B L A N D | L E I S U R E A N D H O S P I T A L I T Y
Covid news government support now winding down The next few months will see the various areas of government support for the hospitality and leisure industries being phased out. These measures have been vital for businesses over the last 18 months, helping them to stay afloat during the various lockdowns and reduced capacity imposed under Covid regulations. A summary of the deadlines is below:
FURLOUGH/Job Retention Scheme – the amounts that employers can claim back under the JRS scheme dropped from 80% to 70% for July 2021. This decreases further to 60% for August and September with businesses having to pay 20% to ensure that the employee still receives at least 80% of their gross wages. The furlough scheme will end on 30 September, with the deadline for submission of the final claim being 14 October 2021. It remains to be seen whether the Chancellor will succumb to pressure from the industry and introduce any further measures. VAT – the temporary reduction to 5% will end on 30 September to be replaced by a new rate from 1 October 2021 of 12.5%. This will be in place to 31 March 2022.
GRANTS – most of the Covid support grant scheme for businesses have now closed, but local councils have had access to funds under the Additional Restrictions Grant which may still be available. LOANS – as with the Covid support grants, the initial government loan schemes that were introduced at the start of lockdown have now closed. Under these schemes, borrowers were able to defer capital and interest payments, and if you have borrowed under these arrangements, there is an option to delay repayments for a further six months if needed. The Recovery Loan Scheme was introduced in April 2021 and is still open with the government backing 80% of the amount borrowed. It is designed to help businesses trade out of the pandemic. BUSINESS RATES RELIEF – full business rates relief finished on 30 June 2021 but a 67% discount is in place for some businesses (subject to a cap) through to 31 March 2022. SEISS – a fifth grant for self-employed individuals is available to be claimed until 30 September 2021 to cover profits from 1 May to 30 September. This differs from previous grants as there are various financial criteria to meet and amount received will be either 30% or 80% of average trading profits, depending on the profits the person has made over these months. The maximum claimable is £7,500.
TOP
TIP
If you are planning to increase your prices from 30 September when the new VAT rate comes in, it may be worth marketing events such as Christmas parties now, so that your customers can pay before the end of September. You’ll improve your cash flow and your customers will pay a lower price for their celebrations!
4 | S C R U T T O N B L A N D | L E I S U R E A N D H O S P I T A L I T Y
TOP
Making Tax Digital (MTD)
TIP
Businesses above the VAT threshold of £85,000 have been required to be part of the MTD scheme since 1 April 2019. From 1 April 2022, this will now apply to ALL businesses that are registered for VAT, even those below the turnover threshold. This means that VAT returns will need to be submitted to HMRC electronically, using digital software which will affect the way records are kept. And from 1 April 2023, self employed individuals and landlords will also need to comply with the MTD rules with quarterly reporting, subject to some exemptions.
It is important to start planning as soon as possible for how you will comply with these rules. It may take time to work out what software you will use and get started, and we recommend talking to a MTD specialist to make sure you are set up correctly and your staff know what to do.
5 | S C R U T T O N B L A N D | L E I S U R E A N D H O S P I T A L I T Y
TOP
Industry comment The good news The clients we are working with have seen a much needed increase in demand
TIP
The not-so-good news We’re also seeing other pressures starting to take effect as supply issues mean there can be shortages and delays to deliveries. There is also speculation around potential inflation rises, which will have an impact on profit margins. These may cause more problems for businesses in an industry that has already been hit hard by the pandemic.
Now may be a great time to research local suppliers. As we move into the autumn there is a wealth of top ingredients to be sourced, and the range and quality of seasonal food and drink has never been better. Customers who have been unable to go out during the pandemic will be looking for memorable dining and leisure experiences, giving you the opportunity to create something extra special to tempt existing and new clientele, and perhaps to charge a little more for the experience.
since lockdown ended in June, and the tourist and leisure industry in our region is definitely benefiting from more staycations as people remain cautious around foreign travel. The change to self isolation rules have certainly helped those that have been forced to close in the recent ‘pingdemic’.
6 | S C R U T T O N B L A N D | L E I S U R E A N D H O S P I T A L I T Y
Get in touch If you need any more information or advice on any of these issues, please don’t hesitate to contact us for a friendly no-obligation chat. Our professional business advisory teams have many years of experience and offer a wide range of services to help your leisure and hospitality business develop, at the same time as ensuring that your financial regulatory obligations have all been met. We provide a number of advisory services to businesses in the leisure and hospitality sector, and can also call on our other teams within the business to provide you with advice in other areas you may need such as insurance, audit or corporate finance. Contact us at hello@scruttonbland.co.uk or call us on 0330 058 6559 .
0330 058 6559 scruttonbland.co.uk
@scruttonbland
0689/08/2021/MKTG
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6Made with FlippingBook Ebook Creator