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 2^nd 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.