COVID Related Grants and Furlough Scheme Extended

Furlough Scheme

The furlough scheme has once again been extended, this time to the end of September 2021. There will be no change to the terms for employees but the scheme will return to a tapered arrangement for employers from the summer.

This means the Government will continue to pay 80% of wages up to a monthly cap of £2,500 until 30 June, with employers covering Employer NICs and pensions from May. From 1 July this will reduce to 70% up to a cap of £2,187.50 and from 1 August to 30 September 2021 the government will pay 60% of wages up to a cap of £1,875.

Self Employment Income Support Scheme (SEISS)

We have seen three periods of grants available via the Self Employment Income Support Scheme (SEISS) so far, with the fourth grant covering the period February to April 2021 set to open in April. The Chancellor has confirmed that this fourth grant will be based on 80% of average monthly profits, capped at £7,500 in total.

Importantly, as the 2019/20 tax return deadline has now passed, those previously ineligible may now be eligible for the fourth and fifth grants, particularly those that are newly self employed and didn’t have a 2018/19 tax return.

A fifth and final grant has also been announced, covering the period May to September 2021 and will open for applications in late July. A grant based on 80% of average monthly trading profits will be available to those that can prove their turnover has fallen by more than 30%. If turnover has fallen by under 30% then a grant will be available covering a significantly lower amount of 30% of average monthly trading profits.

Restart Grants

A further round of cash grants are being made available for businesses with premises that will be reopening in the coming months, as part of the Government’s roadmap out of the pandemic.

  • Non-essential retail businesses are set to open first and can access grants of up to £6,000 per premises.
  • Hospitality and leisure businesses are due to open up later and can access grants of up to £18,000.
  • Local Authorities will also receive funding to make further discretionary grant pots available.

Apprentice Payments

Apprentice hiring incentives are being extended to September 2021 and payments will be doubled to £3,000 for all new apprenticeship hires of any age. A flexi-apprenticeship programme is also being introduced, which will allow people to work for a number of different employers in the same sector.

Recovery Loan Scheme

Bounce Back Loans and the Coronavirus Interruption Loan Scheme will come to an end on 31 March 2021 as planned.

At this point, a new ‘Recovery Loan Scheme’ will become available. This scheme will provide loans of between £25,000 and £10m for businesses of any size through to the end of this year. Lenders will be given a Government guarantee of 80%.

Culture Recovery Fund

£300m extra funding has been made available for the Culture Recovery Fund, to support theatres, museums, heritage sites, festivals, and music venues.

Help to Grow

A new MBA style management training course will be available at business schools across the UK, offering 50 hours of tuition, mentoring and peer learning. This will cost businesses £750 which is 10% of the unit cost. The Government will cover the remaining 90%.

Assistance will also be given to small businesses to enable them to develop digital skills by giving them free advice, and a 50% contribution towards the purchase of new productivity-enhancing software, up to £5,000 each.

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