Budget 2021: Covid support scheme extensions

• In his budget announcement (3 March 2021) the Chancellor announced that the furlough scheme will be extended until 30 September 2021.
• The Self Employed Income Support Scheme will also be extended with a fourth grant which will be available from late April 2021 until 31 May 2021.

Coronavirus Job Retention Scheme (‘CJRS’)

• The announcement confirmed that the CJRS scheme has been extended until 30 September 2021.
• For periods ending on or before 30 June 2021 the current system applies.  Employers can claim 80% of an employee’s salary for hours not worked, up to a maximum of £2,500 per month.
• From 1 July 2021, the amount paid by Government will be reduced monthly and employers will be asked to contribute towards the cost of furloughed employees’ wages.
• The full guidance on CJRS can be found here.

Self-Employment Income Support Scheme (‘SEISS’) fourth grant

• In the Budget it was also confirmed that a fourth SEISS grant will be introduced.
• The fourth grant will be available to claim from April and will cover February, March and April.
• The grant will be set at 80% of 3 months’ average trading profits, paid out in a single instalment, capped at £7,500.
• The fourth grant will take into account 2019 to 2020 tax returns and will therefore be available to those who became self-employed in tax year 2019 to 2020.
• The fourth grant will be available for 600,000 newly self-employed workers as long as they submitted a tax return by midnight on March 2.
• The rest of the eligibility criteria remain unaffected.
• It was also confirmed that a fifth and final grant will be available covering lost income from May to the end of September.

Aspire Comment:

This announcement will come as a huge relief to many businesses and self-employed individuals who simply cannot bring employees back to work and have suffered enormously over the extended periods of shutdown which the UK has seen.

Nevertheless, as and when things slowly get back to normal, HMRC will be seeking to recover any money which has been incorrectly claimed through both the CJRS and SEISS and so, it remains essential that individuals stay completely up to date with the ever-changing guidance and legislation.

We are working with a number of clients with employment guidance, such as restructuring, redundancies, home working and absence policies.  Please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk for a chat to see how we can support you and your business.