Furlough Extended
This will now be available until 30 September 2021.
Employees, there are no changes to the terms.
Employers will contribute towards the cost of unworked hours. This will be 10% in July and 20% in August and September.
Self-employed Grants
There will be two more of these – Grants 4 and 5. To claim, a 2019/20 self-assessment return would have to have been lodged by 2 March 2021. People who started self-employment in 20/21 may therefore be eligible, as long as they meet all other eligibility criteria that related to Grant 3.
Grant 4, from February to April 2021, can be claimed from late April. This will be worth 80% of three months’ average trading profits, paid as a single instalment, capped at £7,500. (So gross average profits per month £3,125)
Grant 5, from May to September 2021, can be claimed from late July. People whose Turnover has fallen by more than 30%, can claim as per Grant 4.
People whose Turnover has fallen by less than 30% can receive a 30% grant, capped at £2,850.
Loan Schemes – Government Supported Financing
A new Recovery Loan Scheme was announced to replace the CBILS. A businesses of any size can apply for loans between £25,001 and £10 million and asset/invoice financing between £1,000 and £10 million. The government will be providing an 80% guarantee on these loans.
Help with Premises Costs
The Business Rates Holiday has been extended to 30 June. For the remaining 9 months of the 2021/22 tax year, for businesses that have not been able to open, rates will be capped at 2/3 of the normal figure.
Incentives for Apprentices
Incentive payments for taking on an Apprentice will increase to £3,000 per Apprentice, regardless of age, and this will extend to 30 September. This incentive is in addition to the £1,000 for Apprentices aged 16 to 18 and those under 25 with an Education, Health and Care Plan.
Kickstart
The goal of this programme is to encourage young people into jobs that require only basic training but will significantly improve their career prospects for the future. This scheme is open to any business, there is no longer a minimum number of placements. The placements must be entirely new, for individuals between 16 and 24 years old only, who are in receipt of Universal Credit. Each placement will attract a government payment of 100% of the National Minimum Wage (depending on age of participant), and associated Employer National Insurance and auto enrolment pension contributions - for 25 hours per week, for 6 months.
Once the 6 months have been completed, the young person may be able to transfer to another employment scheme – such as a Traineeship or an Apprenticeship.