COVID-19 Business Support
Coronavirus Job Protection Scheme (Furlough)
The Furlough amount claimable is changing from Thursday 1st July 2021. The total amount you can claim in July for one employee is £2,187.50 in July. The total for August and September claimable is £1,875 per employee.
Eligible employees must NOT do any work for the hours that you are claiming furlough for them. If your employee is furloughed, you need to have confirmed this with them in writing. If they are flexibly furloughed, you must agree with them what hours they will work.
Employers must continue paying employees taxes and pension contributions.
Changes to the furlough scheme
As of 1st July, there will be a reduction to the amount that you can claim. The employee will still receive 80% of their wages, but the employer will now need to contribute to this amount.
- July 2021 – Gov. contribution = 70%, Employer = 10%
- August 2021 – Gov. contribution = 60%, Employer = 20%
- September 2021 – Gov. contribution =60%, Employer = 20%
The scheme is set to end in September 2021.
Self-Employment Income Support Scheme
The deadline for the 4th grant was the 1st of June 2021. The details for the application of the 5th grant will be issued in the next few weeks, so keep an eye out.
To be eligible you must:
- You must have traded in both the 2019-20 and 2020-2021 tax years.
- Be a self-employed individual or a member of a partnership. You cannot claim the grant if they trade through a limited company or a trust.
- Be currently trading but are impacted by reduced demand OR have been trading but are temporarily unable to do so due to COVID-19.
- You must declare that you intend to continue trading.
- Have reason to believe that there is a significant reduction in your trading profits between 1st May 2021 and 30th September 2021. Evidence must be kept as proof.
There are some circumstances that will affect your eligibility. Please follow this link for more information.
Details to note for SEISS
The grant is subject to Income Tax and the National Insurance Contributions. You must report the grant on the 2021-22 Self Assessment tax return. It will also count towards your annual allowance for pension contributions.
For more information, please visit SEISS Gov Page.
For the period 1st July 2021 to 31st March 2022, the business rate relief will reduce from 100% to 66%.
This is capped at £2million per business and relates to businesses that were required to be closed on 5th January 2021. A lower cap of £105,000 applies to other eligible properties.
Properties that benefit from this relief include those that are used wholly or mainly as:
- Shops, restaurants, cafes, drinking establishments, cinemas and live music venues.
- Hotels, B&Bs and self-catering accommodation.
- Use for assembly and leisure.
This relief continues to be processed through your local authority.
Working from home tax relief
If you haven’t already done so, you can claim here for tax relief if you have been working from home. If you have been working full or part time from home, the government recognises that you will have additional costs as a result, e.g. a rise in heating bills.
You can now claim for periods up to 5th April 2022. If you complete a Self Assessment tax return, you will need to claim this as working from home expenses on the employment income pages on your tax return.
If you needed to buy equipment for work, you may also be able to claim tax relief on this. Find out more here.
Stamp Duty Holiday
This scheme concluded yesterday (30th June 2021). Residential rates on purchases are now as below for the period 1st July 2021 to 30th September 2021.
Property or lease premium or transfer value
Stamp Duty Land Tax rate
|Up to £250,000||zero|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
VAT Deferral Scheme
The VAT deferral scheme has also closed.
Businesses that deferred their VAT payments, that were due between 20th March 2020 and 30th June 2020, need to have made their payments by 30th June 2021.
If you have been unable to pay this on time, please see the government website.
A quick reminder that P11D forms for the 2020-21 tax year need to be completed and submitted by 6th July 2021. Following this, Class 1A NIC’s will need to be paid by 22nd July, or the 19th if paying by cheque.