and how it could affect you
After that many leaks…
...there weren’t too many surprises, when the Budget was released.The Chancellor’s plans were a balance between continued support and a roadmap of how the government plan to kickstart the economic recovery and start to pay down the UK’s debt. The team here at Redstone have been reviewing what the Chancellor actually said in his delivery of the Budget and in reality, what that really meant. So here are our 10 take homes form this year's budget….
#1 Updated Furlough scheme
The furlough scheme won’t change until the end of July, with the government still paying 80% of an employees wage for the hours they cannot work.In July the government will be asking employers to contribute 10% and between August and September 20%. Great news for new starters, under this new scheme any employee who was added to the payroll by the 2nd of March will be eligible to claim under the scheme from the 1st May.
#2 Self-Employed Support
Over 600,000 new people can now benefit from the government’s support packages provided to the self-employed until the end of September, as long as they have completed their ‘19-‘20 tax return by midnight on the 2nd of March.Two further SEISS grants will be available for self-employed people who continue to be affected by the pandemic. However, for those who operate via their owner managed business who pay themselves a wage and dividends through their own company will still not be fully covered by the evolved scheme. If they operate through PAYE, they can still have SOME of their salary covered by the job retention scheme but this will exclude any dividends.
#3 Lower VAT Rate for Hospitality firms
The hospitality sector will continue to pay the reduced 5% VAT rate until the end of September. Following this there will be an interim 12.5% until April 2022. After this it is anticipated to return to the standard rate.
#4 Business Rates Holiday
Retail and Hospitality firms will continue to receive Business Rate Holidays until the end of June. For the remaining 9 months of the financial year, their rates will be discounted by two thirds.
#5 £5b in restart grants for shops and businesses
From April, the ‘New Restart Grant’ will provide much-needed support to businesses that have had to close their doors due to the pandemic.Grants are available for pubs, shops, hair salons, hotels and other non-essential businesses to support them through to the 21st June when everyone hopes all restrictions will be lifted.
Are you eligible for the Grant Restart Scheme? If you can answer yes to the following questions then you are: 1. Are you based in England? 2. Do you occupy the property on which you pay business rates? 3. Have you closed your doors due to the national lockdown from the 5th of January ‘21 onwards Or the 5th of November and 2nd of December and have not been able to present your normal in-person service from your premises? However, you cannot get funding if: • You’ve continued to operate during the lockdown period because you didn’t depend on providing direct in-person services from your premises (for example accountants) • You’ve chosen to close, but have not been required to close as part of national restrictions • Your business is in administration, insolvent or has been struck off the Companies House register • You have exceeded the permitted subsidy limit