The government releases the Budget statement yearly to outline the local economy’s status. It also plots out where the money will be spent and forecasts how the economy could perform in the future. Last March 3, 2021, the 2021 Budget was presented by Chancellor Rishi Sunak, and it contained information that will directly impact small businesses like yours. Here are some details worth noting:
Furlough Scheme Extension
The Coronavirus Job Retention Scheme, also known as the furlough scheme, will be extended until the end of September 2021. It was first introduced in July 2020 to support eligible UK employers facing financial difficulties to help them retain employees at this challenging time. It lets you bring back employees on a part-time basis. You will pay employees for any days worked, while the government contributes for the remainder or 80 percent of furloughed staff wages.
As an employer, you will now have to pay ten percent towards the number of hours your employees spent not working this July, and then this percentage will increase to 20 percent in August and September. This extension scheme will help your business stay afloat and grow this year.
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Self-Employment (SEISS) Scheme Extension
If you are running a small business and consider yourself self-employed, you will be delighted that the Self-employment Income Support Scheme has been extended. A new wave of grants is also all set to go ahead.
The fourth grant will cover February to April, while the fifth grant will cover July to August. Because of this, you will continue to receive the 80 percent grant if your turnover has dropped by at least 30 percent. On the other hand, you will still be eligible to receive a 30 percent grant if your turnover has fallen by less than 30 percent. This scheme is also applicable to those who are only recently self-employed. You are eligible if you have filed a 2020 tax return.
Help to Grow Schemes
Two Help to Grow schemes are set to be introduced by the government by autumn this year. They aim to help support small to medium-sized business owners like you to receive management training. Best of all, 90 percent will be paid for by the government.
These schemes also include the Help to Grow: Digital scheme, which lets you develop digital training by industry professionals. It also offers a 50 percent discount on new software worth up to 5,000 pounds.
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Recovery Loans Scheme
Although the Bounce Back Loan Schemes were already closed to new applications last April, a new scheme will be put in place: The Recovery Loan Scheme. It lets businesses of all sizes borrow between 25,000-10 million pounds. The government will also guarantee lenders 80 percent to coincide with the amount of money borrowed. Applications will be open until the end of 2021.
Your small business may have been hit hard by the global pandemic. The good news is that in Budget 2021, the government outlines its plan on supporting business owners like you and protecting jobs. Meanwhile, if you need further assistance in growing your business this year and learning more about how Budget 2021 will affect you, consider partnering with clever tax accountants like us.
Cheap Accountants in London provides you with a broad range of affordable accounting services, including bookkeeping and taxation, at affordable rates. We have over 40 years of combined experience in the industry, which means you can count on us for everything finances, and accounting. Contact us to request an instant quote!