Budget 2021: Furlough scheme extension and additional grants announced
With messages of the economy recovering over time, The Chancellor of the Exchequer Rishi Sunak started his budget announcement on 3 March 2021.
We’ve outlined a summary of some of the key points of the budget relating to the Furlough Scheme and grants announced.
Furlough Scheme extended
With the effect of COVID-19 impacting all walks of life, perhaps the most eagerly awaited announcement for many is the continuation of the Furlough Scheme until September 2021.
July will be a date of note where businesses will be asked for a 10% contribution towards hours that employees don’t work. This will rise to 20% in August and September.
Those that are self-employed will also continue to receive support until September.
Grants for retail, hospitality and leisure
To provide help for many businesses in the retail, hospitality and leisure sector, the Chancellor announced a new Restart Grant set to start in April.
With non-essential retail businesses due to open in April (COVID-19 permitting), grants of up to £6,000 per premises have been made available.
Hospitality and leisure companies will have grants of up to £18,000 available.
This equates to an additional £5bn of new grants in the offing.
Business rates holiday
The business rates holiday will continue with an extension to the end of June.
The 5% VAT reduction is also extended to 30 September 2021. Then a rate of 12.5% will be put in place with the standard rate returning April 2022.
Accountancy services
If you are a business owner looking for support with your financial accounts to help you navigate the current situation then get in touch and speak with one of our accountants. We can help you stay on track, alert you to relevant grants and help you to meet required deadlines so that you do not incur any financial penalties.
There’s no doubt that the past year has been tough for many businesses. Our advisory services can help with your tax planning, financial forecasting and budgeting. Working with our team of accountants, we can prepare a budget and plan tailored to your business to help you achieve your goals.
With a team of accountants working for you, this forecasting can help keep you on target through regular reviews so that any necessary changes to your business plan can be implemented to help you reach your financial goal.