Budget 2021 - Part One - Business Recovery

budget_recovery_schemes

As expected, this year’s budget was packed full of announcements which have a direct impact on small business.  There were so many I will need to split the review into two separate posts.  The first will cover announcements of short-term support schemes and the second, which I will publish later, will cover the major tax changes.   

To enable readers to quickly find the information most relevant to them I will list the headlines only here but provide links to enable you to find detailed information on each scheme. 

HMRC Budget 2021 Summary – (Click Here)

 

Schemes, Grants and Loans

 

Coronavirus Job Retention Scheme (CVJRS) – Feels a bit like DeJa’Vu but we have actually been here before.  The scheme that enables employers to furlough staff and reclaim a proportion of their costs has been extended to 30th September, but support rolls off in much the same way as it did last year.   The 80% drops to 70% in July and down to 60% for the final two months.  (Full details here)

Self-Employment Income Support Scheme (SEISS) – This scheme has also been extended to the end of September with the announcement of a fourth and fifth claim period.  Claims open late April for the Fourth period (Details on how to claim here)

VAT Deferral – Not really an announcement in this year’s budget but the VAT deferral repayment scheme for those that deferred VAT payments between 20th March 2020 and 30th June 2020, is now open.  The sooner you join the more instalments you can set your repayment over, you must register to use the scheme by 21st June.  (Full details here)

Business Rates – The chancellor announced additional business rate support for eligible retail, hospitality, leisure, and nursey businesses that occupy a qualify property.  These amount to up to 100% for the period 1st April – 30th June.  (Copy of guidance here)

Restart Grants – Non-essential retail businesses will get up to £6,000 per premises through the scheme to help them reopen. In England, shops will reopen no earlier than April 12. Those due to open later in hospitality, accommodation, leisure, personal care and gyms, can receive up to £18,000, depending on their rateable value. (contact local council for more info)

New Recovery Loan Scheme – Set to replace both the Bounce Back Loan and Coronavirus Business Interruption Loans (CBILS), the new scheme will launch on April 6th, close December 31st, with loan range of between £25k and £10m.  The new scheme is like CBILS in that loans are 80% backed by Government so prepare for banks to be less than free and easy with the new scheme.  Indeed, the reason CBILS was replaced by the Bounce Back loan scheme was due to banks taking a risk adverse approach and not approving the type of loan volume the government had hoped for.  The subsequent Bounce Back scheme was 100% government backed to remove the risk from the Banks.  (Applications can be made via your business bank from April 6th)

 
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