A number of the support packages set up by the government to help businesses and individuals through the pandemic are due to either come to an end or change. Many of the measures, including the Coronavirus Job Retention Scheme (commonly known as the furlough scheme), have seen several extensions since they were introduced but these can’t last forever.
Here is a reminder of the schemes available that are due to change soon.
Coronavirus Job Retention Scheme (CJRS)
The scheme was set up to provide businesses who were affected by Covid 19, a grant to pay a proportion of their furloughed employee salaries throughout the pandemic. There have been several extensions to the scheme as well as variable amounts available.
The scheme is due to end on Thursday 30 September, meaning employees cannot be furloughed after this date. Employers have until 14 October 2021 to make their claim for September. From 1 October, employers will have to resume paying the full amount of their staff salaries.
Self-Employment Income Support Scheme (SEISS)
A scheme set up allowing the self-employed and who use the Self Assessment income tax system to claim grants. This scheme has also had several extensions, offering 5 grants in total. The final grant period runs from 1 May 2021 – 30 September 2021 and importantly applications for the fifth grant have to be claimed via the online portal by Thursday 30 September. Eligibility for the fifth instalment will be based on your decline in turnover as a result of coronavirus. Find out more on gov.uk
Stamp duty land tax rates (SDLT)
The initial SDLT holiday where no duties were due on residences for the first £500,000 changed from 1 July 2021, reducing the zero-rate band to £250,000. From 1 October 2021 SDLT rates will return to “normal” pre-covid levels at £125,000.
Coronavirus loan schemes
There were several different loan schemes set up by the Government which provided guaranteed loans at attractive interest rates. These have since been closed and replaced by the Recovery Loan Scheme, allowing businesses to borrow from commercial lenders and are 80% guaranteed by the government.
You can still apply for the Recovery Loan Scheme until 31 December 2021 (certain exceptions apply). See gov.uk
Reduced rate for hospitality and tourism
The government reduced the VAT rate for certain goods and services from 20% to 5% to support the hospitality industry. Again, this scheme was extended to Thursday 30 September. From 1 October 2021 an increased, yet still reduced, VAT rate of 12.5% will apply until 31 March 2022. From 1 April 2022, the 20% standard rate will apply.
If you want to find out more about what government business support is available, visit gov.uk.
How can we help?
If you have business concerns regarding the upcoming deadlines, or would like help navigating the support you can access, contact your usual relationship practitioner, email email@example.com or call us on 0161 905 1616.