Newslink March 2021

Budget
Chancellor offers more protection
to the economy until September
Chancellor Rishi Sunak used his 2021
Budget to offer one final tranche of
support for businesses and those
members of the self-employed struggling
to cope with Covid restrictions, by
extending furlough and self-employment
support packages until September.
Throughout his Budget statement
Sunak offered support to many people
who have been forced to stop work by
Covid restrictions, but the sub-text made
it clear that the unprecedented
Government support of the economy
would have to end, and with the vaccine
programme driving down Covid cases
and deaths, it was clear that he saw his
latest measures as one last push to get
the economy through summer.
By autumn, come hell or high water,
we’re on our own by October, seemed to
be the over-riding message.
ADIs will benefit from the extension of
the Self-Employment Income Support
measures; and there was good news,
too, for those ADIs and, in particular,
PDIs who have missed out on previous
support packages: by widening the
remits of the SEISS programme it was
reported that an extra 600,000 more
self-employed people will be eligible for
help. Hopefully, if you missed out
previously, you can apply this time.
Under furlough, 80 per cent of
employees’ wages will be paid until the
end of September, with employers asked
to contribute 10 per cent in July and 20
per cent in August and September.
Other key points:
• Universal Credit top-up of £20-perweek
will continue for a further six
months
• Alcohol and fuel duties to be frozen
• 5% reduced rate of VAT for tourism
and hospitality will be extended for six
months to the end of September
• On income tax, the threshold for
paying the basic rate will rise to
£12,570 next year. For higher-rate
payers, the threshold will be £50,270.
Both rates will stay the same until
2026.
• The VAT registration threshold will
remain at £85,000 until 2024.
• The 100% business rates holiday in
England will continue from April until
June
• Stamp duty cut will continue until
the end of June, with the nil rate band
set at £250,000.
Self-Employment Income
Support
See if you can apply –
click here for details
Support for
self-employed
instructors
The Chancellor’s support for the
self-employed comes in the form of
grants through the Coronavirus Self-
Employed Income Support Scheme
(SEISS).
From next month, claims can be made
for a fourth grant worth 80 per cent of
three months’ average trading profits, up
to £7,500 in total.
This will then be followed by a fifth
grant later in the year, from May.
However, the amount paid will depend
on the amount of turnover lost. People
whose turnover has fallen by less than
30 per cent will receive a grant that is
equivalent to 30 per cent of average
trading profits.
While many self-employed people
were ineligible for the first three waves of
support – the source of considerable
despair for those affected – many ADIs/
PDIs who can show they were trading in
2019-20 from their tax returns will now
be eligible for the first time. They can
receive the fourth and fifth grants.
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NEWSLINK n MARCH 2021