As the Covid-19 government support schemes close, Martyn Dobinson, partner, Saffery Champness and a member of the firm’s Landed Estates and Rural Business Group, said that individuals and businesses across the rural sector will have to face up to tougher times as lifeline support is withdrawn and thoughts turn to repayment of that support.
The Coronavirus Job Retention Scheme (CJRS) closed on September 30, with final claims having had to be made by the deadline on October 14.
Claimants have until October 28, to advise of any amendments to claims made. The final round of the Self-Employed Income Support Scheme (SEISS) closed on September 30.
Both the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme closed for new applications earlier this year on March 31.
The Recovery Loan Scheme remains open until December 31, 2021.
‘Yet to see the full impact’
Martyn Dobinson said:
“Clearly, we are yet to see the full impact of the ending of the government’s Covid-19 support measures, particularly the CJRS or Furloughing Scheme, and how that might translate into job losses.
“With other pressures on the sector, particularly from large increases in operating costs, it seems likely that there will be casualties as we move into the winter.
“Income support received through the government schemes, such as CJRS and SEISS, must be reported separately on tax returns and taken into consideration in determining taxable income or profits for income tax and corporation tax purposes.
HMRC will undoubtedly continue to pursue incorrect claims, and we may see additional measures to recoup erroneous or fraudulent claims announced by the Chancellor as part of his autumn budget on October 27.
“It is even more important for businesses facing additional pressures in these challenging times to talk to their advisors, so that mitigation measures can be discussed with HMRC at the earliest opportunity, and plans put in place to ease passage through what for many will be a very difficult times ahead.”
