CPA Bulletin

www.cpa.uk.net CPA Bulletin > February/March 2021 35 LEGAL: 3 Driver Certificate of Professional Competence changes Driver Certificate of Professional Competence (CPC) periodic training is to be monitored by the Driver and Vehicle Standards Agency (DVSA) to ensure drivers are not unnecessarily repeating training as part of the 35-hour requirement. This change follows a review of Driver CPC training, and recommendations made by the European Commission which the Government has adopted. The DVSA will monitor drivers records to identify periodic training that does not support their professional driver development because of unnecessary repetition. If DVSA identifies unnecessary repetition of training, then they may take action which could include revoking the driver’s Driver Qualification Card (DQC). Coronavirus Business Interruption Loan Schemes closing The Government is intending to close the Coronavirus Business Interruption Loan Scheme (CBILS). The deadline for companies to submit an application is no later than 31st March 2021. There are various CBILS products where you can borrow between £5,000 and £5m - subject to the applicant qualifying for the desired loan. Qualification includes disclosing the company’s turnover on the application. The benefits of the scheme are: • Very low interest rates • Reduced payments for the first 12 months on asset finance, no payments for the first 12 months on loans • No upfront fees • Terms from 12 months to 6 years • No personal guarantees required on advances up to £250,000. Payment reductions and moratoriums have proved very popular to those who have applied. An SME business can borrow up to a maximum of 25% of their 2019 turnover, so even if a company has already taken out a CBILS product, they may still be able to obtain further borrowing. In one particular case study, a plant-hire company was looking to reduce their monthly commitments due to a reduction in income as a result of COVID-19. CPA member SKM Asset Finance Ltd arranged a refinance of some of their existing finance agreements to consolidate them into one new agreement. Taking advantage of the Government’s Business Interruption Payment (BIP), the monthly payment on the new agreement was significantly lower than their existing aggregate payments and the flat rate was less than 2.0% per annum. With companies keeping a close watch on their cashflow, they may be unaware of the scheme’s approaching closing date. So, it might be wiser to obtain confidential advice and act sooner rather than later. This article was kindly drafted by Steve Moody of SKM Asset Finance Ltd on 01202 855080 or steve@skmassetfinance.co.uk Minimum Wage The Government has announced that the National Living Wage (NLW) and the National MinimumWage (NMW) rates will increase from early April. The NLW will increase by 2.2% from £8.72 to £8.91 per hour. Workers aged 23 and over will receive £8.91 per hour. Workers aged 21-22 inclusive will receive £8.36 per hour. Workers aged 18-20 inclusive will receive £6.56 per hour. Workers aged 16 and 17, if they have ceased to be of compulsory school age, will receive £4.62 per hour. Apprentices under 19, or aged 19 and over but in the first twelve months of their apprenticeship, will receive £4.30 per hour.