Here’s some financial information which may help clubs from the recent Budget:
- VAT reduction for the UK’s tourism and hospitality sector – The temporary reduced rate of 5% VAT for goods and services supplied by the UK tourism and hospitality sector will be extended until 30 September 2021. A 12.5% rate will apply for the subsequent six months until 31 March 2022.
- Business rates relief – Eligible retail, hospitality and leisure properties in England will receive 100% business rates relief from 1 April 2021 to 30 June 2021. This will be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022, capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.
- New Recovery Loan Scheme for UK businesses – From 6 April 2021 a new Recovery Loan Scheme has been announced to enable businesses of any size to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close.
- Restart Grants – The government will provide ‘Restart Grants’ in England of up to £6,000 per premises for non-essential retail businesses and up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses. The government is also providing all local authorities in England with an additional £425 million of ARG discretionary business grant funding, on top of the £1.6 billion already allocated. Full details of the scheme are yet to be announced but is indicated that these grants will be available in April. It is recommended that Clubs ‘register’ with their Local Authority to receive their relevant electronic information updates to ascertain further details as and when these are published.