In Rishi Sunak’s Budget 2021 announcement new coronavirus support was announced.
Some of the support is brand new, while other support has changed slightly.
If you’re interested in the furlough scheme or the self-employed income support scheme, then you can read about those in more detail at our blog here.
As for this blog, we’ll be focusing on the new wave of support.
The Restart grant has been introduced to benefit non-essential businesses.
Up to £6,000 per premises is available for these types of businesses, so that they are covered until they are permitted to reopen in the roadmap set out by the government.
There are some businesses who will have to wait longer on the roadmap, before they can reopen. These will benefit from a larger grant.
Businesses in the hospitality and tourism sector, leisure, personal care and accommodation are those who will be able to receive a larger grant of up to £18,000.
Recovery Loan Scheme
The new Recovery Loan Scheme is actually a replacement of two other popular loans that were introduced in 2020.
The Bounce Back loans & the Coronavirus Business Interruption Loan Scheme (CBILS) have officially been replaced by the new Recovery Loan Scheme.
Businesses will be able to apply for loans between £25,000 to £10 million, with 80% of the amount being guaranteed by the government.
In order to qualify for the loan, a business must show:
- It is viable (or would be viable if not for the pandemic).
- It’s been impacted by the coronavirus pandemic
- Is not in collective insolvency proceedings.
The scheme opens on the 6th April and will run until the 31st December 2021.
Business Rates Holiday
An extension has been applied to the business rates holiday for retail, hospitality and leisure businesses.
This extension is until the end of June 2021.
After this date, rates will continue to be discounted by two-thirds (up to a value of £2million for businesses who have been forced to close).
If your business was able to remain open, then there is a lower cap (£105,000). There is the option to opt-out of this support if your business was largely unaffected by Covid-19.
The government has also increased the incentive for businesses to hire apprentices.
The figure was £1500 per apprentice…. but this has now doubled, meaning that a business who hire apprentices will receive £3000 each.
They must be a new hire, but can be of any age. This support will be available until 30th September 2021.
Claiming Tax Credits
The Universal Credit increase of £20 per week will be extended by 6 months, and there will also be a one-off payment of £500 of anyone who claims Working Tax Credits.
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