Budget 2021 Announcements

Furlough and SEISS

As widely anticipated, the Chancellor, Rishi Sunak, has announced extensions to the Job Retention Scheme and the Self-Employed Income Support Scheme

SEISS

A fourth grant under the Self-Employment Income Support Scheme (SEISS) scheme will run from February until April, covering up to 80% of three months’ trading profits up to £7,500.

Also, there will be a fifth grant from May to September.

For these payments a turnover test has been introduced.

People whose turnover has fallen by 30% or more will get the 80% grant, but self-employed people whose turnover has fallen by less than 30% will get a 30% grant.

The government is widening access to grants to bring in many newly self-employed people who were not eligible under the first three grants.

To be eligible the 2019/20 tax return must have been filed by midnight on 2nd March 2021, some two days after the extended deadline for filing the tax return.

Furlough

As predicted, the scheme has been extended September 2021.

Furloughed employees will be entitled to a payment of 80% of their pay, subject to the overriding limit of £2,500.

There are requirements as to employer contributions, the balance of the 80% will be funded under the scheme.

For July 2021, the employer contribution will be 10%, thus the Government will fund 70%.

For August onward, the employer funding rises to 20%, the Government paying 60%

As ever, with both schemes there will be further information available and more detail is expected to be published shortly.

See more here.

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