The 2021 Budget announced the launch of the ‘Help to Grow’ scheme, and applications are now open. The programme will help small and medium-sized businesses with management or digital training. Help to Grow – Management This is an executive development programme to help improve business performance and growth potential. The government will cover 90% of the cost of the training. What is it? It’s a 12-week training programme delivered by business schools across the UK, and it starts in June 2021. It will be a
RUNNING YOUR SMALL BUSINESS
On 3rd March, the Chancellor delivered the 2021 budget. Here’s our summary of the key measures impacting small limited companies. Feel free to get in touch if you have any questions. Key tax rates and allowances Income tax and NICs The personal allowance will increase on 6th April 2021 from the current £12,500 to £12,570, but will then be frozen until 5th April 2026. Basic rate band increased, from £37,500 to £37,700. The impact of both the increase in personal allowance and in the basic
With a national lockdown now imposed, the government has announced the JRS will continue in much the same way as it was operating in August 2020. What’s happening? The Job Support Scheme (JSS) was going to be taking over when the JRS was due to end, on 31st October 2020. However, given the renewed nationwide lockdown, the JRS has been extended. What are the details? The JRS will start from 1st November 2020 (even though the nationwide lockdown is only from 5th November. Initially this
This is an index of the different information we have published on our website on the UK Government’s measures to support small businesses. The Government is rapidly coming up with new measures and new detail on existing measures, so we’re updating these links when we know more. Use the links below to get where you want to go: JOB RETENTION SCHEME EXTENSION, NOVEMBER 2020JOB SUPPORT SCHEMEEXPANDED JSSJOB RETENTION SCHEME BONUSJOB RETENTION SCHEMEJOB RETENTION SCHEME – CHANGES FROM 1ST JULYVAT DEFERRALPAYMENTS ON ACCOUNT (FOR SELF ASSESSMENT)STATUTORY
With the second wave of infections, the Chancellor has announced changes to coronavirus support schemes from 1st November 2020. Job Support Scheme (JSS) The Job Retention Scheme (JRS) was due to end on 31st October, and be replaced by the JSS. The JSS in its original form was announced in late September. Then, on 9th October, the Chancellor announced an ‘expanded JSS’ to help businesses forced to close due to local lockdowns. For clarity, we’re going to talk about Original JSS and Expanded JSS, as
The ‘Expanded’ Job Support Scheme helps businesses who have been forced to close due to a local lockdown. Expanded Job Support Scheme (JSS) For clarity, in this article we cover the ‘Expanded’ JSS; this is the scheme to support businesses that have been forced to close due to local lockdowns. The ‘Original JSS’, which supports businesses across the UK, including those not in a local lockdown, instead see this article. Summary The JSS has been expanded to support businesses required to close their premises due
NOTE: THIS WILL NO LONGER BE PAID IN FEBRUARY, DUE TO THE EXTENSION OF THE JRS. The Job Retention Bonus provides additional support to employers who keep on their furloughed employees in employment up to 31 January 2021. What is the Job Retention Bonus? The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a
Before 27th June, due to the Covid-19 pandemic, Companies House was allowing “immediate and automatic extensions” to annual accounts deadlines. Since 27th June, this has been modified, to make the extension automatic, in some cases (see ‘Who is eligible?’ below). Who is eligible? Any prviate limited company (Ltd) company with a due date for filing annual accounts between 27th June 2020 and 5th April 2021. Do I need to apply? No, since the update on 27th June, you don’t need to apply – the extension
Changes to the Job Retention Scheme (JRS) From 1st July 2020, there are some significant changes being made to the Job Retention Scheme. Here are the details…. Closing to new entrants Firstly, and importantly, the JRS is closed to new entrants from 30th June. More precisely, that means that, because of the minimum furlough period of 3 weeks, the final date by which an employer can furlough an employee for the first time is 10th June. But don’t worry – if you’ve already furloughed your
Job retention scheme As part of the Government’s measures to help businesses through the Covid-19 pandemic, the Chancellor last night announced the ‘Job Retention Scheme’. In this article, we look at how the scheme impacts small limited companies, as well as the directors of these owner-managed limited companies. Note: there are changes being made from 1st July – see the details here. What is this? To reduced layoffs due to coronavirus, the government will pay 80% of the usual monthly gross salary, plus associated Employer’s
Bounce Back Loan Scheme What is it? This new loan scheme was announced on 27th April, and is targeted to small businesses, with loans of between £2,000 and £50,000 The loans will be much quicker and easier to apply for and receive than the existing Business Interruption Loan Scheme; the government announced that the loans will be paid within days of applying, and within 24 hours of approval. Like with the existing loan scheme, interest is covered by the Government for the first 12 months.
VAT deferral for Coronavirus The Chancellor has announced measures to help small businesses through the Coronavirus pandemic. There are two main points on this: All payments due between 20th March 2020 until 30th June 2020 to be deferred All payments between those dates are then to be paid off by 31st March 2021 Payment of VAT is due 1 month and 7 days after the end of a VAT quarter. Therefore, the VAT quarters that can be deferred are those ending on 29th February, 31st
Support for the self-employed REMEMBER THAT THE BELOW DOES NOT APPLY TO DIRECTORS OF LIMITED COMPANIES; THEY ARE NORMALLY EMPLOYEES, NOT SELF-EMPLOYED. What support is there? The Government announced on 26th March the ‘Self-employment Income Support Scheme’ or SEISS. The scheme aims to be similar to the Job Retention Scheme in the amount that it grants. This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months.
Payments on account for self-assessment are usually due on 31st July each year. The payments due on 31st July 2020 are now deferred until 31st January 2021. You don’t have to do anything for this change to take place – simply don’t pay your payment on account. Please note, of course, that you do still need to pay the tax due, and in fact, the amount payable on 31st January 2021 will be especially high. It’s therefore good practice, wherever possible, to set aside the
IR35 Postponement for 12 months It was widely expected that the IR35 rules were to be tightened, which would impact a number of contractors. The change was going to place the responsibility for assessing IR35 on the end client, rather than the contractor for medium and large private sector end clients. This change has now been postponed until the tax year 2021/22, starting on 5th April 2021. Therefore, the IR35 rules remain unchanged.