JOB RETENTION SCHEME
HMRC have extended the furlough scheme until September 2021. It will continue to pay 80% until June 2021, 70% in July 2021 and 60% in August and September 2021. This scheme as always is to retain jobs where work is not currently available, if your turnover is the same pre Covid, you may need to look at whether this scheme is applicable any longer.
The 4th grant will be available late April 2021 and will cover the period from February 2021 – April 2021 and will pay out 80% of profits to a maximum of £7,500.
The 5th and final grant will cover May 2021 – September 2021 and will be calculated on a turnover test. If your turnover has fallen by 30% or more you will receive the 80% grant, if it has fallen by less than 30% then you will only receive a 30% grant.
Options available for deferred VAT payments due from the period between 20 March 2020 and 30 June 2020 are to pay the deferred VAT in full, on or before 31 March 2021 or join the VAT deferral new payment scheme – the online service is open between 23 February 2021 and 21 June 2021.
The main rate of corporation tax remains at 19% until 1st April 2023. It will then increase to
25% for profits over £250,000 and remain at 19% for profits under £50,000. Profits in
between £50,000 and £250,000 will be based on 25% with marginal relief meaning the rates
will fluctuate between 19% and 25% depending on level of profit over £50,000.
- £8.91 per hour – 23 yrs. old and over
- £8.36 per hour – 21-22 yrs. old
- £6.56 per hour – 18-20 yrs. old
- £4.62 per hour – under 18yrs. old
- £4.30 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
If you claim employment allowance then the suggested director salary should change to
£1,045 per month, if however, you are not eligible to claim employment allowance then the
suggested director’s salaries should be increased to £735 a month.
To support the recovery of the high street the Chancellor has announced a one-off payment
‘Restart Grant’. Full guidance has not be given yet but it is likely that this grant will be made
available to qualifying non essential retail, Hospitality and Leisure businesses from 1st April
2021 onwards ranging from £6,000 – £18,000. Please visit your local councils website for