Budget 2021 - Important information for your Business

The chancellor, Rishi Sunak, said he would continue to do 'whatever it takes' to protect jobs and aid the recovery from the coronavirus pandemic, as he outlined in the budget yesterday.

The announcement that there will be tens of billions of pounds to extend the furlough scheme, support businesses through lockdown and boost economic growth came as welcome news to business communities.
Coronavirus Job Support scheme extended until September 2021

The Coronavirus Job Retention Scheme has been extended until 30 September 2021. 
 
From 1 July 2021, the level of grant will be reduced and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.

For further information click HERE.
VAT: reduced rate for hospitality, holiday accommodation and attractions

The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:

  • Hospitality
  • Hotel and holiday accommodation
  • Admissions to certain attractions

The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 31 March 2021. Further information can be found HERE.
Other measures announced are as follows:

Further information will be communicated upon its release from the government.

  • An extension of the UK-wide Self Employment Income Support scheme to September 2021, with 600,000 more people who filed a tax return in 2019-20 now able to claim for the first time.

  • £5 billion for new Restart Grants – a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England. Launches on April 6th.

  • A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.

  • An additional £300 million to support theatres, museums and other cultural organisations in England through the Culture Recovery Fund.

  • 750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.

  • Extension of the apprenticeship hiring incentive in England to September 2021 and an increase of payment to £3,000.

  • £7 million for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.

  • Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.

  • More than doubling the legal limit for single contactless payments, from £45 to £100
  • £90 million funding to support our government-sponsored national museums in England due to the financial impact of Covid-19.

  • Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.

  • To further support the cashflow of businesses, the government is extending the loss carry back rules worth up to £760,000 per company.

  • £100 million for a new Taxpayer Protection Taskforce to crack-down on COVID fraudsters who have exploited UK Government support schemes.
Simple guide to business grants

View our guide to businesses grants which includes, where available, links to further details and application forms.

Please click on the box below and scroll down to the Business Support & Advice section.
Business Support Guide

Read our latest Business Support Guide and click on the link below.

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Luton BID is project managed by Partnerships for Better Business Ltd (pfbb UK)