Entrepreneurs Break
No Result
View All Result
Sunday, July 3, 2022
  • Home
  • News
  • Business
  • Entertainment
  • Tech
  • Health
  • Opinion
Entrepreneurs Break
  • Home
  • News
  • Business
  • Entertainment
  • Tech
  • Health
  • Opinion
No Result
View All Result
Entrepreneurs Break
No Result
View All Result
Home Business

What Help We Predict Will Be Available for UK Small Businesses in 2022

by James Vince
December 8, 2021
in Business
0
SEO Competitor Analysis Tool by Ayesh Zubair
157
SHARES
2k
VIEWS
Share on FacebookShare on Twitter

The last 18 months have not been an easy period for small businesses. From lockdowns causing them to close down completely, to social distancing guidelines making it difficult for them to operate as normal, it is hardly surprising that many small businesses have struggled to survive. 

 

This has been such a problem across the board that the UK government has had to step up and offer support to those businesses who need it the most. So whether you are a small business that is struggling to stay open, or you are interested to know what support network you have in place if things don’t go so well in the new year, then this is the guide for you. 

 

Here is what help we predict will be available for UK small businesses in 2022. 

 

Table of Contents

  • VAT rate reduction
  • Employment allowance
  • Government backed business loans
  • Super deduction scheme
  • Time to pay arrangement

VAT rate reduction

The cost of VAT can be one of the main expenditures that small businesses face. When you are buying supplies and products needed to keep you operating, the costs can soon start to add up. 

 

Therefore, as a way to offer extra and help support, the government has reduced the rate of VAT for certain items for eligible businesses. This mostly includes the hospitality sector and items such as hot/cold food and non-alcoholic beverages that are consumed on business premises. 

 

While this VAT rate reduction from 20% to 5% was available for eligible businesses during 2021, we also predict it to be available at 12% until 31 March 2022. However, we recommend that you check out whether your small business is eligible for this initiative before you make any plans or investments.

 

Employment allowance

The employment allowance is another government scheme that the UK government has made available to support struggling small businesses. It allows employers who are eligible to reduce how much national insurance they pay by up to £4,000. 

 

As a business with employees, you are expected to contribute towards their National Insurance. However, under this scheme, you can reduce how much you pay every time you run your payroll until you reach the £4,000 rate (or the tax year ends – depending on which comes first). You can check if you are eligible here. 

 

Government backed business loans

It can be surprising how much the cost of running your own business starts to add up, and while you may feel like a business loan could be exactly what you are looking for, you may be worried about finding the loan that is right for you.

 

Therefore, the UK government has created the Pay As You Grow loan that small business owners can access via their high street bank. This is part of their Bounce Back Loan scheme which aims to give small businesses the extra support they need. 

 

But do not worry, these government-backed loans do not affect your credit score or affect your credit file negatively as long as you keep up with repayments and don’t miss any deadlines. 

 

Super deduction scheme

One of Rishi Sunak’s latest initiatives as part of his 2021 budget, the Super Deduction scheme encourages small businesses to invest money where it is needed the most to help support their future. The initiative can reduce corporation tax bills by up to 130% on any business investment made in the next 2 years. 

 

So whether your small business would benefit from new computer equipment or want to make a new investment in the air compressor industry, this is a great scheme to help improve any cash flow issues. 

 

Time to pay arrangement

Another way that small businesses will be helped and supported in 2022 is by the government’s Time to Pay scheme. This was announced in the last budget and allows those who self assess their tax contributions to spread the cost via installments. This makes it more affordable, and HMRC has also revoked the 5% payment charge for this payment plan to make it more accessible. 

 

While the thought of being a small owner in 2022 may be an anxiety-provoking one, there is likely to be a range of initiatives and schemes in place that can help offer you the support you need to make the new year a successful one.

Tags: Small Businesses
  • Trending
  • Comments
  • Latest
Potential High Return Cryptocurrencies in 2021

Potential High Return Cryptocurrencies in 2021

October 25, 2021
5 Tips to Becoming a Good Actor- The Best Guide by Julian Brand

5 Tips to Becoming a Good Actor- The Best Guide by Julian Brand

January 9, 2022
How to Search, Share and Download Video TikTok

How to Search, Share and Download Video TikTok

April 25, 2022
New Roof

How Long Will It Take To Install My New Roof

August 7, 2021
Top 5 Safety Tips for your Family Road Trip

Top 5 Safety Tips for your Family Road Trip

2
Discover How to Get More Facebook Fans in 3 Weeks

Discover How to Get More Facebook Fans in 3 Weeks

1
Blockchain for Social Good

Blockchain for Social Good: Transparency and Accountability is Key

1
What is TikTok? Lets find out more about the app of the moment

What is TikTok? Lets find out more about the app of the moment

0
Android App Development vs iOS App Development: Which One You Should Choose?

Android App Development vs iOS App Development: Which One You Should Choose?

July 3, 2022
Social Security Number

Everything You Need To Know About Social Security Number

July 3, 2022
What are the Womens Popular Glasses This Year

What are the Womens Popular Glasses This Year

July 3, 2022
Lightest Glasses

Materials that Make Up the Lightest Glasses

July 3, 2022
Entrepreneurs Break

Entrepreneurs Break is mostly focus on Business, Entertainment, Lifestyle, Health, News, and many more articles.

Contact: [email protected]

Note: We are not related or affiliated with entrepreneur.com or any Entrepreneur media.

© 2022 - Entrepreneurs Break

No Result
View All Result
  • Home
  • News
  • Business
  • Entertainment
  • Tech
  • Health
  • Opinion

© 2022 - Entrepreneurs Break

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In