Chancellor Revamps Coronavirus Loan Scheme

A loan scheme for small and medium sized firms impacted by coronavirus has been overhauled, making it easier for affected businesses to access funds.

The Chancellor has announced the extension of the Coronavirus Business Interruption Loan Scheme to all viable small businesses affected by the pandemic.

In a statement, the government said the move is intended to maximise the support available, promising that all small businesses will be eligible for a loan, should they need finance to keep operating during this difficult time.

Calls to increase VAT threshold

The Association of Independent Professionals and the Self-Employed (IPSE) has called on the Chancellor to increase the VAT threshold from £85,000 to incentivise self-employed workers.

The plea was issued in response to a government consultation on the VAT threshold.

This consultation was opened after the Office for Tax Simplification (OTS) suggested that the threshold should be lowered significantly to £26,000 - the UK’s national average wage.

Chancellor pushes on with Making Tax Digital

The Chancellor Philip Hammond has confirmed that he will push ahead with Making Tax Digital for VAT reforms in April, despite warnings that many firms are not ready for the change.

In the Chancellor’s written ministerial statement, he said that Making Tax Digital “is an important first step in this modernisation of the tax system to which the government remains committed.”