Blog

Small Business Cashflow Loan update

The Government recently announced the following changes will be made to the Small Business Cashflow (Loan) Scheme:

  • Currently no interest is charged if the loan is repaid within one year. This will be increased to two years.
  • Currently the loan can only be used for core operating costs. This will be broadened so that the loan can be used, for example, on capital expenditure.

In addition, applications for the loan can now be made until 31 December 2023, an extension of three years.

These changes will be made by Inland Revenue unilaterally changing

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Business Finance Guarantee Scheme

Business Finance Guarantee Scheme

More small and medium-sized businesses may be eligible for the Business Finance Guarantee Scheme, with a simplified and expanded scheme now in place. Participating banks can provide new loans, increased limits to existing loans or a revolving credit facility to eligible businesses. The scheme supports banks to take on lending by government taking on the default risk of up to 80% of the loan. Changes to the scheme mean the loans can be used for capital purchases and projects in response to or recovery from COVID-19. This
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Provisional Tax and remission of Use of Money Interest (UOMI)

    The Government recently introduced a power to enable the Commissioner of Inland Revenue to remit UOMI where a taxpayer has been adversely affected by COVID-19. However, the provision may not be working as intended for taxpayers who make an underpayment of a provisional tax instalment due to COVID-19 related difficulties in accurately forecasting income. The amendment allows Inland Revenue to remit UOMI accrued on an amount of terminal tax payable for the 2020-21 tax year where the taxpayer failed to pay the relevant portions of the
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