Holidays at commercial rates have been one of the most effective COVID-19 support measures for the retail, hospitality, and leisure industries. Around 400,000 companies in the hospitality and leisure sectors have benefited from holidays at 100% commercial rates during the last 15 months, as part of the Treasury’s coronavirus assistance program.
Commercial Tariff Relief
In the March 2021 budget, the government extended commercial tariff relief for qualifying retail, hotel, and leisure properties in England until June 30, 2021. The government also announced that a 66% transitional relief will apply from July 1, 2021, through March 31, 2022. As a result of the reduction in support, city councils will begin charging hospitality and leisure companies with fee payments from the beginning of July.
Reduction of Commercial Rates
In addition to the reduction of commercial rates that fall to 66%, the reduction will also be subject to a limit. For the period from April 1, 2021, to June 30, 2021, there was no cash limit for the relief received. As of July 1, 2021, the relief will be capped at £ 105,000 per business, or £ 2 million per business when the business occupies property that was or should have been closed, under applicable law and guidelines. January 5, 2021.
Capacity Has Been Reduced
The pandemic has not only affected businesses in one authority’s district but has also potentially affected the council itself. The holiday from commercial tariffs is coming to an end and authorities may want to start conducting reviews again, but they simply do not have the equipment or capacity available to perform these reviews. With the increased workloads due to COVID subsidies and self-isolation payments that need to be made, in addition to dealing with more traditional day-to-day tasks, the easiest solution for many boards may be to find a partner. This is where Advantax Accountants can help.
Businesses should contact their local authority if they have any questions about these changes.
According to the real estate consultant Group, the reduced relief plan until April 2022 will require tens of thousands of small businesses to meet tax obligations worth up to £ 5 billion. Any business affected by these changes should review its cash flow situation when it is not ready for the change. Given that the UK government continues to cover a third of professional fee commitments for qualified companies for £ 3.3bn, this brings the government’s total financial support to £ 17.1bn, One Door said.