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Chancellors Budget 2021 – what you need to know
The Chancellor, Rishi Sunak, made various announcements at the budget this week. Here is a round up of those that may affect or impact you.
This is now being extended until 30 September 2021.
Up to 30 June 2021
- The 80% government contribution will be in place up to a maximum of
£2,500 per month
1 July 2021
- Employers are required to contribute 10% furlough wages with the
government contributing 70%
1 August 2021
- Employers contribution moved to 20% and the government funding is
reduced to 60%
All payments will be in addition to existing NI and pension contributions. Full details can be found here and our policies are being updated to reflect these changes.
Recovery Loan Scheme
A new loan scheme is being introduced to support access to finance, which will run until the end of 2021. The scheme will cover borrowing between £25,000 and £10 million.
Further details are here
Apprentices and Trainees
This is very welcome news as additional support for employers taking on apprentices is being introduced, with the incentive payment doubling to £3,000.
Further details will be provided at a later date.
Self-Employment Income Support Scheme (SEISS)
A fourth grant under the SEISS scheme has been confirmed at 80% of 3 months’ average trading profits, paid out in a single instalment, capped at £7,500.
The fourth grant will consider 2019 to 2020 tax returns and will be available to those who became self-employed in the tax year 2019 to 2020.The remaining eligibility criteria remains unchanged.
There will be a fifth and final grant covering May to September 2021. This will be either 80% of 3 months’ average trading profits, capped at £7,500 for those with a turnover reduction of 30% or more; or 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%. Full details are here.
‘Help to Grow’ Scheme
Two ‘Help to Grow’ schemes would be introduced to empower SMEs to become more productive in the short and long term.
The first in relation to the government supporting with management training for decision-makers in businesses who have been operating for more than 1 year, with between 5 to 249 employees. Twelve-week management programmes will provide subsidised management training to enhance skills of leaders in areas such as financial management and digital adoption.
The second scheme is in relation to support with digital technology. Businesses will be able to access free impartial advice on how technology can boost their performance through a new online platform. Business may be able to get a discount of up to 50% on the costs of approved software, worth up to £5,000.
‘Super-deduction’ on Tax
From April 2021 for two years, the new ‘super deduction will cut companies tax bills by 25p for every pound that they invest in new equipment, ensuring the UK capital allowances regime is amongst the world’s most competitive.
Further information is here.
For full information on the budget 2021, please see here.
*All information is correct at the time of publishing. Use of this material is subject to your acceptance of our terms and conditions.