The Chancellor, Rushi Sunak, announced in the Spring Budget 2021, that small businesses will have CJRS and SEISS extended.
Coronavirus Job Retention Scheme (CJRS)
The furlough scheme has been extended to September 2021 across the UK. This means limited company directors will still be able to claim if they have been affected by coronavirus at 80% of the current salary for hours not worked, until July.
The government is asking all employers to start contributing to their employee’s cost of unworked hours starting from July. In July the contribution will be 10%, August 20% and September 20% as a strategy to kickstart the economy.
Self-employment Income Support Scheme (SEISS)
For self-employed workers, the Chancellor has extended the Self Employment Income Support scheme to September 2021. 600,000 more people will be able to claim for the first time.
To be eligble for this scheme, the new claimants must have their 2020/21 tax returns submitted by 2nd March 2021.
The fourth SEISS grant will be worth 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500 in total. The grant will cover the period February to April 2021 and can be claimed from late April.
The fifth grant is to cover May to September.
Corporation tax will rise in 2023 to 25% from 19%, but the good news is that small businesses with trading profits of under £50,000 will continue to be taxed at 19%. If a business has profits of between £50,000 and £250,000, the tax will be tapered.