The recent budget provided lots of taking points, here are some of the highlights:


Coronavirus Job Retention Scheme (CJRS)

  • The Coronavirus Job Retention scheme (CJRS) will now remain open until 30 September 2021.
  • Up to the end of June 2021, employers will be able to claim 80% of employees’ usual hours not worked, up to a maximum of £2,500 per month.
  • For the month of July 2021 employers will be able to claim 70% of employees’ usual hours not worked, up to a maximum of £2,187.50.
  • In August and September 2021, employers will be able to claim 60% of employees’ usual hours not worked, up to a maximum of £1,875 per month.
  • Employers will be responsible for payment of employers National Insurance contributions.
  • Employers will be responsible of automatic enrolment pension contributions.
  • Employers do not need to have previously used CJRS.
  • To claim CJRS from May 2021 onwards, eligible employees must be on the PAYE payroll on 2 March 2021.
  • Employers do need to have benefitted from the scheme before to commence claiming from the scheme from May 2021 onwards.
  • Employers can fully furlough employees – this means that the employee does no work for the employer.
  • Employers can flexibly furlough employees – this means employees can work for the employer for any amount of time but can claim 80% of unworked hours.

Self Employed Income Support Scheme (SEISS)

  • SEISS will continue until September 2021 with a fourth and fifth grant.
  • The fourth taxable grant will be calculated based on 80% of three months’ average trading profits, paid out in a single payment and capped at £7,500 in total. The value of the grant will be based on average of trading profits for up to four tax years between 2016 to 2020, where available.
  • The fourth grant claim must be made by no later than 31 May 2021.
  • The fifth and final grant will be worth 80% of three months’ average trading profits, capped at £7,500, for those with a higher reduction in turnover (30% or more). For those with a lower reduction in turnover, of less than 30%, then the grant will be worth 30% of three months average trading profits.
  • The fifth grant can be claimed from July 2021 onwards and we will share more details when made available.

5% VAT rate for Hospitality

  • For businesses in the tourism and hospitality sectors, the government has extended the temporary 5% reduced rate of VAT until 30 September 2021.
  • A rate of 12.5% will then apply for a further six months to 31 March 2022.

Recovery Loan Scheme

  • This scheme will ensure businesses of any size can continue to access loans once the existing COVID-19 loan schemes close.
  • The government will guarantee 80% of the finance and can be used for legitimate business purpose including growth and investment.
  • No personal guarantees will be taken on facilities up to £250,000 and the borrower’s principal private residence cannot be taken as security.
  • The scheme will launch 6 April 2021 and further details are still to be issued.

Business Rates Relief

  • Businesses in retail, hospitality and leisure will also pay no business rates until September 2021.

Restart Grant Scheme

  • In England, non-essential retail businesses will be able to apply for grants up to £6,000 to reopen in April. For businesses within hospitality, leisure, accommodation, personal care and gyms will be able to apply for grants up to £18,000, depending on their rateable value.

Corporation Tax Rates

  • Corporation Tax rates will remain at 19% until April 2023.
  • From April 2023, businesses with profits of £50,000 or less will continue to be taxed at 19%. A tapered rate will also be introduced for profits above £50,000 and businesses with profits of £250,000 or greater will be taxed at a 25% rate.
  • From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim a 130% super-deduction capital allowance on qualifying plant and machinery investments. There will also be a 50% first-year allowance for qualifying special rate assets.