The Chancellor has announced a new ‘Pay as You Grow’ initiative to help the 1.4 million small businesses who took out government-backed Bounce Back Loans.  Borrowers will have the option to:

  • Extend the length of their loan from six to ten years.
  • Make interest-only payments for six months. Businesses will be able to use this option up to three times throughout the loan period.
  • Pause repayments entirely for up to a further six months (available from the first repayment rather than after six repayments have been made).

Lenders will reach out to borrowers to provide information on the Pay as You Grow initiative.

The Chancellor has said that this will give small businesses “breathing space to get back on their feet”.

 

How can we help?

At Hawsons we have a dedicated team of small business accountants at our offices in Sheffield, Doncaster, and Northampton. Our Business Services Department is dedicated to helping smaller businesses, providing a range of tax and accountancy services to small and growing businesses.

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Craig Walker

Tax Director, Sheffield

0114 266 7141

More similar content

Tax Rates and Allowances 2022/23

Introduction We have summarised the key rates and allowances which are fundamental to our business and personal lives. We are sure that you will find them a useful point of reference and have set out below a few examples of how they can be used. Personal tax rates As...

Spring Statement 2022

Spring Statement 2022 Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his first Spring Statement on Wednesday 23 March 2022. In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the...

Plastic Packaging Tax

HMRC are to introduce a Plastic Packaging Tax from 1 April 2022. The aim is to incentivise businesses to use more recyclables in the manufacture of plastic packaging. In turn, this will stimulate increased levels of recycling and collection of plastic waste, diverting...

What are Freeports? VAT implications

A Freeport is designed to attract major domestic and international investment, these hubs of enterprise will allow places to carry out business inside a country’s land border but where different customs rules apply.​ At a Freeport, imports can enter with simplified...

Autumn Budget 2021

Budget 2021 The Chancellor Rishi Sunak presented his third Budget on 27 October 2021. In his speech he set out the plans to "build back better" with ambitions to level up and reduce regional inequality. Main Budget proposals Tax measures include: a new temporary...