Newsletter - Dealing with bounce back loans & more
With Bounce Back Loans having passed the 12 month mark, repayments have begun.
However, not all businesses are back to running at 100% so let's look at some "Pay as you Grow" options for managing your Bounce Back Loan. Keep in mind that all of these will increase the total repayment and should only be used as a stopgap and only when essential.
Request an extension of the loan term to from six to ten years, at the same fixedinterest rate of 2.5%
Reduce the monthly repayments for six months by paying interest only. This optionis available up to three times during the term of the Bounce Back Loan
Take a repayment holiday for up to six months. This option is available once duringthe term of the Bounce Back Loan
BUSINESS PLANNING - SPRING STATEMENT & NATIONAL INSURANCE
The Spring statement has seen an increase in the National Insurance (NI) PrimaryThreshold for Class 1 NICs to £12,570 pa. This means that employee NI contributions only kick in on salaries over £1047.50 p/month, to compensate for the previously declared rate increase to 13.25%. But this is not effective until 6 July 2022 and for the first 3 months of22/23, the Primary Threshold is £9,880, £823.33 p/month. Please let Amanda know if you want her to oversee your current payroll.
Those employers entitled to claim Employment Allowance will, from 6 April 2022, have the first £5,000 of employer NI relieved which is an increase of £1,000. We will have to wait for another couple of years for the promised 1% cut in basic rate tax though.
Please remind all your employees earning above the primary threshold that their payslips will be hit by the changes from April.
GOLDEN NUGGETS - SUPER-DEDUCTION
Whilst budgeting for capital expenditure over the next few years, remember that the super-deduction relief introduced to encourage business investment ends on 31 March2023. The super-deduction means that for any purchase of qualifying new plant and machinery, companies will receive a deduction against profits of 130% of the purchase price and a 50% first year allowance for qualifying special rate assets.
MAKING THE MOST OF XERO - HUBDOC
Hubdoc is a xero affiliated app which allows you to photograph, forward or uploaddocuments and it will autofill half the information needed for Xero. This is a system thatsimplifies and speeds up the process for you and reduces the admin burden.
If you are interested in using Hubdoc please contact Daniel Brick and he will set you upand provide a more thorough rundown. Daniel is also available to assist you optimiseXero, making the most of its functionality and helping you develop your xero skills.