With thousands of retail stores given the green light to open in the next few weeks, the government needs to think of helpful tax breaks and further assistance, say tax and advisory firm Blick Rothenberg.
“The problem is that many retailers are already on their knees having had no income for some three months now they will have to spend money that they don’t have on making sure that both staff and shoppers are safe when they re-open their doors,” said Richard Churchill a business advisory partner at the firm.
He added: The Government have already done a great deal for business and are encouraging shops to open to give that much needed kick start to the economy but for many it’s going to be another expense and they are going to have try and find the money for things like screens, protective equipment and extra security to police the measures they introduce.
“With the June rental payment looming it is clear the bounce back loan scheme may provide insufficient funding for all these additional costs.”
Richard said: “ The Government should consider a one-off grant or voucher system specifically for the purchase of equipment or modifications to shops designed to mitigate the risk of Covid-19 spreading and to observe social distancing guidance. “
He added:” Alternatively expenditure on such equipment could be subject to enhanced tax relief to give greater benefit for such expenditure and in a similar way to Research and Development expenditure consideration as to whether losses generated through this expenditure can be surrendered to HMRC for a cash receipt.”
“Also businesses that have overlooked CBILs in favour of Bounce Back loans and now require additional funding will be excluded from the CBILs scheme and consideration should be given to allowing such companies in receipt of a bounce back loan to also be eligible for a CBILS loan.”