In addition to previous national and local support schemes, businesses that have been required to close due to national restrictions imposed by the Government as of 5 January 2021 may be eligible for a one-off grant of up to £9,000.
For charities that are companies or CIOs new insolvency law (Corporate Insolvency and Governance Act 2020)extends the ‘utilities supply’ rules, so suppliers may have to continue providing services even if not being paid during a moratorium.
Contracting authorities have been encouraged by the Government to support suppliers, including charities. This should assist cash flow but may be more complex in payment by result arrangements and will require greater transparency by the contractor charity.
Where charities charge for admission to a charity garden or property, any attempts to limit this to members-only under staggered opening plans could invalidate any Gift Aid claims on membership subscriptions. This is due to the need for properties to be accessible by all members of the public to be eligible to claim.
The reduced (5%) rate of VAT applies until 13 March 2021, to certain supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK, as well as for accommodation and attractions. This applies to charities, although where an admission fee is exempt, this will continue to take precedence.