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FURLOUGH SCHEME
- Furlough scheme will be extended until September
- No change to the conditions for employee
- Businesses will be asked to contribute 10% in July and then 20% in August & September
SELF EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)
- 4th Grant covering February to April – support at 80% of average profits
- 5th Grant covering May to August depends on turnover decrease
- 5th Grant – if turnover has decreased by 30% or more – support at 80% of average profits
- 5th Grant – if turnover has decreased by LESS than 30% – support at 30% of average profits
- Newly Self-Employed individuals who filed a 2019/20 tax return by midnight 2nd March 2021 will be eligible to claim the 4th & 5th
BUSINESSES
- From April 2023, corporation tax will increase to 25% for businesses with profits above £250k
- Small businesses (profits below £50k) will continue to be subject to 19% rate
- Corporation tax rate will be tapered for businesses with profits between £50k-£250k
- New Super-Deduction tax break – firms that invest in new equipment will be eligible to claim tax relief worth up to 130% of cost for the next 2 years
- Corporation tax losses will be eligible for 3 year carry back (currently 1 year)
- No rises for income tax, NIC or VAT rates
- New Restart grant will be available from April
- Non-essential retail business will receive grants of up to £6,000 per premises
- Hospitality and leisure businesses will receive grants of up to £18,000
- Recovery loan scheme – any business can apply for loans from £25,000 up to £10million – government will provide a guarantee to lenders of up to 80%.
- Continuation of business rates holiday (100% from April-June 2021 & 67% from July to March 2022)
- Reduced 5% VAT rate for Hospitality & Tourism industry to continue until 30th September 2021 and will increase to 12.5% until March 2022
- 20% VAT rate for Hospitality & Tourism industry will return in April 2022
STAMP DUTY LAND TAX
- Stamp Duty Nil Rate Band of £500k will be extended until end of June
- From July until end of September, Nil rate band will be reduced to £250k
- Pre-Covid Nil rate band of £125k will return from October
APPRENTICES
- Doubling the incentive payments to businesses for hiring apprentices to £3,000
- Applies to all new apprentice hires of any age
OTHER MEASURES
- Universal Credit uplift of £20 to continue for another 6 months
- Working tax claimants will receive a one off payment of £500
- Government will provide a mortgage guarantee for first time buyers who can only afford a 5% deposit
