4th March 2021
The governments budget, released on Wednesday, has an impact on all business across the UK. These changes are the same for each devolved governments too.
The following information we feel is relevant to you as florists however all the Budget info can be found here
Furlough
- The Coronavirus Job Support Scheme has been extended to run until September 30th 2021 across the UK.
- The scheme will continue at 80% and will then taper with employers contributing 10% from July and 20% in August and September. Employees will continue to receive 80 per cent of their salary for hours not worked until the scheme ends. The employers’ contribution will be in addition to their National Insurance and pension payments, which they pay at the moment.
- Individuals and businesses in Scotland, Wales and Northern Ireland continue to be supported through the Coronavirus Job Retention Scheme, self-employment grants, loan schemes and VAT cuts. Devolved administrations are also and provided an additional £2.4 billion in 2021-22 through the Barnett formula.
- the Scottish Government will benefit from a £1.2 billion funding boost
- the Welsh Government a £740 million funding boost
- the Northern Ireland Executive a £410 million funding boost
See how to claim for furlough Here
Self employment Income Support
- 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 (even if you become self-employed in 2019/20)
- A fourth grant from the Self-Employment Income Support Scheme (SEISS) will be available to claim from February until April, worth 80 per cent of three months’ average trading profits up to £7,500. It will be open to anyone who filed their 2019/20 tax return by midnight 2nd March .
- A fifth and final grant will be available from May onwards, worth three months of average profits. This will be open to claims from late July.
See Here for updates on claiming
Grants / Restart grants
- £5 billion has been allocated for new Restart Grants- Support for those businesses worst affected by Covid – retail, hospitality and leisure businesses with non-essential retail receiving up to £6,000 per business premises.
- These will be administered by Local Authorities as per previous grants.
Check with your local authority
Recovery loans
- A new UK-wide Recovery Loan Scheme will be available for 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.
- The scheme will be open until the end of the year.
See Here for more
Training
- Extension of the apprenticeship hiring incentive in England to September 2021 has been made, and an increase of payment to £3,000.
- £7 million has been made available for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
- An 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.
Apprenticeship info can be found Here
Taking credit card payments
- Single contactless payments set to rise from £45 to £100.
SSP
- 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.
How to claim Here
Your taxes
- Maintaining the income tax Personal Allowance and higher rate threshold from April 2022 until April 2026.
- The rate of Corporation Tax will increase to 25%, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023. Businesses with profits of £50,000 or less, around 70% of actively trading companies, will continue to be taxed at 19% and a taper above £50,000 will be introduced so that only businesses with profits greater than £250,000 will be taxed at the full 25% rate.
- Northern Ireland will benefit from the Corporation Tax exemption for the Northern Ireland Housing Executive.
Others !
- Reforms to the immigration system, it is indicated, could help UK businesses attract the brightest and best international talent.
- Plans for at least £15 billion in the coming financial year, to help finance critical projects to tackle climate change and other environmental challenges, fund important infrastructure investment, and create green jobs across the UK.
For more the government ‘What you need to know’ points on the budget CLICK HERE
Image by Nattanan Kanchanaprat
