Last reviewed: November 2026. This article replaces our earlier COVID-19 updates from 2020 and 2021.
Between 2020 and 2022 the government introduced a series of emergency measures to support businesses and the self-employed through the pandemic. Every one of these schemes has now closed to new applications. Some of them still matter in 2026, however, particularly loan repayments and HMRC checks on past claims. This guide sets out where each scheme stands today and what, if anything, you need to do.
At a glance
| Scheme | Status | Still relevant? |
|---|---|---|
| Coronavirus Job Retention Scheme (furlough) | Ended 30 September 2021 | Yes: HMRC checks on past claims |
| Self-Employment Income Support Scheme (SEISS) | Final grant closed 30 September 2021 | Yes: tax treatment and overpayment recovery |
| Bounce Back Loan Scheme | Closed to new loans 31 March 2021 | Yes: many loans still in repayment |
| Coronavirus Business Interruption Loan Scheme (CBILS) | Closed to new loans 31 March 2021 | Yes: many loans still in repayment |
| VAT payment deferral | Final instalments due by March 2022 | Only if arrears remain |
| Reduced VAT rate for hospitality | Ended 31 March 2022 | Only for historic VAT returns |
Coronavirus Job Retention Scheme (furlough)
The furlough scheme ended on 30 September 2021, and the last date to claim for September 2021 was 14 October 2021. No further claims can be made.
What still applies:
- HMRC continues to review claims. If you discover that a claim was too high, the overclaimed amount must be repaid to HMRC.
- Grants that a business was not entitled to are recovered through a 100% income tax charge. Penalties can apply where an overclaim was not notified to HMRC in time.
- Furlough grants were taxable income of the business, so they should have been included in the relevant accounts and tax returns.
- Keep your furlough agreements, payslips and claim calculations. If you receive a letter from HMRC asking you to check your claims, reply promptly and take advice.
Self-Employment Income Support Scheme (SEISS)
The fifth and final SEISS grant closed for applications on 30 September 2021.
What still applies:
- SEISS grants are taxable. They are subject to Income Tax and Class 4 National Insurance in the tax year in which they were received. In practice, the first three grants fell into 2020/21 and the fourth and fifth into 2021/22.
- The fourth and fifth grants were based on tax returns for 2016/17 to 2019/20. If one of those returns was later amended and your entitlement went down, HMRC may ask you to repay the difference. Where it is not repaid, HMRC can raise a formal assessment.
Bounce Back Loans and CBILS
Both schemes closed to new applications on 31 March 2021, but many businesses are still repaying these loans.
What still applies:
- You remain fully liable for the debt. The government guarantee protects the lender, not the borrower.
- Bounce Back Loans: the Pay As You Grow options allow eligible borrowers to extend the loan term from six to ten years, take interest-only periods, or take a single six-month repayment holiday. You apply through your original lender.
- CBILS: Pay As You Grow does not apply. If repayments are becoming difficult, speak to your lender early.
- New borrowing: the main government-backed scheme for SMEs is now the Growth Guarantee Scheme. It launched on 1 July 2024, replacing the Recovery Loan Scheme, and is available through accredited lenders. The government guarantee is again for the lender, and the business remains 100% liable.
VAT payment deferral
Businesses could defer VAT payments due between 20 March and 30 June 2020. The deferred VAT had to be paid by 31 March 2021, or spread through the VAT Deferral New Payment Scheme in interest-free monthly instalments ending by March 2022. A 5% penalty applied where deferred VAT was not paid, or an arrangement made, by 30 June 2021.
What still applies: nothing new. If any VAT arrears remain, contact HMRC about a Time to Pay arrangement.
Reduced VAT rate for hospitality, holiday accommodation and attractions
A temporary reduced rate of 5% applied from 15 July 2020 to 30 September 2021, followed by 12.5% from 1 October 2021 to 31 March 2022. The standard rate of 20% has applied to these supplies since 1 April 2022.
What still applies: only historic VAT returns. Make sure the correct rate was used for each period, in case HMRC reviews them.
What we recommend now
- Keep all records relating to furlough claims, SEISS grants and COVID-era loans.
- Review your Bounce Back Loan or CBILS repayments as part of your cash flow planning, and consider whether the Pay As You Grow options are right for you before you need them.
- Respond promptly to any HMRC letter about a past COVID-19 support claim.
- Take advice before refinancing a COVID-era loan or taking on new borrowing under the Growth Guarantee Scheme.
Need help?
If you have received an HMRC letter about a past claim, are struggling with loan repayments, or want to review your company’s cash flow, our team can help. Call ISA Consortium on 01923 332586 or contact us online.
This article is general information and not advice for your specific circumstances. Please speak to us before acting on it.
