Coronavirus Business Support – Budget Update
The Chancellor announced new measures to help businesses and jobs through the pandemic and pledged support to the UK’s long economic recovery. A recent study showed that only one in four businesses in retail, hospitality and leisure would be able to pay business rates in full at the end of March. Therefore, he announced another business rates holiday until the 30 June 2021. This will be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022.
Coronavirus Job Retention Scheme (CJRS)
The Coronavirus Job Retention Scheme has now been extended until the 30 September 2021. However, employers will be asked to contribute towards the cost of unworked hours at a rate of 10% in July and 20% in August and September 2021. The employee will continue to receive at least 80% of their current salary for hours not worked. For more information click here.
Self-Employment Income Support Scheme (SEISS)
There is a significant change to the eligibility criteria for the self-employment income support scheme, in so far as if you submitted a 2019/20 tax return by the 2 March 2021 you should be eligible to claim for grants 4 and 5. This would mean that approximately 600,000 individuals that were unable to claim grants 1-3 would now be able to claim grants 4 and 5. The amount of each grant will be equal to 80% of 3 month’s average trading profits, which will be paid out in a single instalment capped at £7,500. However, one thing to remember for grant 5 is that if you’re turnover has fallen by 30% or less the grant is capped at £2,850. The tax payer must make the application themselves. For further information please click here.
Grant funding will be available to businesses in England through a new £5 billion Restart Grant scheme. This is to help the high street and most likely will be administered by local councils. It was announced that up to £6,000 per premises for non-essential retailers and up to £18,000 per premises for hospitality, leisure, accommodation, personal care and gym businesses.
Recovery Loan scheme
A new business loan scheme which will give lenders an 80% guarantee on eligible loans between £25,000 and £10m. The loan can be used for any legitimate business purpose, including growth and investment. It will also be open to those who have already received support under the existing coronavirus guaranteed loan schemes. Applications should be made directly to banks and will remain open until 31 December 2021.
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