Changed or extended schemes
Job Retention Scheme open to the end of September 2021
The Job Retention Scheme will continue to remain open after the economy unlocks in July, with the scheme staying in operation until the end of September 2021. The amount an employee receives for hours not worked will remain at 80% of salary, up to £2,500 per month. Employers will need to continue paying NICs and pension contributions until the end of September. There will be additional contributions for employers to make to the scheme from July, with employers contributing 10% of wages in July and 20% in August & September.
Self Employed Income Support Scheme
The SEISS will also cover the period to the end of September 2021. At the March 2021 Budget, the UK Government confirmed two further grants for the self-employed would be paid out. A fourth taxable grant worth 80% of 3 months’ average trading profits, capped at £7,500, was available to eligible business to cover the period from February 2021 to April 2021. A “fifth and final grant” covers May to September. Payments will depend on how much your turnover has been reduced in the year April 2020 to April 2021. This grant will be worth 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%. Eligibility will now be based on your submitted 2019 to 2020 tax return.
VAT cut for hospitality and tourism sector extended
The application of the temporary reduced rate (5% down from the 20% standard rate) for goods and services supplied by the hospitality sector will be in operation until the end of September 2021. To provide further support to these sectors, there will be an interim VAT rate of 12.5% for another 6 months, which will be in place until the standard returns for these goods and services in April 2022.
Business rates relief for businesses in the retail, hospitality and leisure sectors
Many of the businesses in the retail, hospitality and leisure sectors that benefited from 100% business rates relief until the end of June 2021 will continue receive reduced rates. For eligible businesses, rates will be discounted by 2/3rds until 31 March 2022, with the following limits. The 66% relief will be capped at £2m per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties. More details can be found here.