Other forms of financial assistance

The government has extended the Self-Employed Income Support Scheme (SEISS) to September 2021. 

The grant now covers 2019-20 tax returns and the government says an extra 600,000 may now be eligible. All other eligibility criteria will remain the same for the fourth grant as the third grant.

The fourth grant, covering February, March and April, opened for applications in late April and closed on 31 May 2021. It covers 80% of average trading profits up to £50,000, capped at £7,500. 

The fifth grant, covering May, June, July, August and September, will open for applications in late July. If your has fallen by 30% or more, you can access the full grant. The full grant is worth 80% of three months’ average trading profits up to £50,000 and capped at £7,500. If your turnover has fallen by less than 30%, you will receive a 30% grant, capped at £2,850.

The government has announced a further extension to the Coronavirus Job Retention Scheme (CJRS) until the end of September 2021. 

Employees will continue to receive 80% of their current salary for hours not worked. Employers need to pay National Insurance contributions (NICs) and pensions in April, May and June.

From July, the government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.

The government have announced that businesses who deferred VAT payments due from 20 March to 20 June 2020 can now pay in smaller payments over a longer period.

Instead of paying the full amount by the end of March 2021, businesses can make smaller payments up until the end of March 2022. Businesses will need to opt-in to the scheme.

The temporary reduced rate of 5% VAT for goods and services supplied by the tourism and hospitality sector will be extended until 30 September 2021. A 12.5% rate will then apply for six months until 31 March 2022.

If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system are deferred to 31 January 2021. This is an automatic offer, so you do not need to apply for this deferral.

You need to contact the HMRC coronavirus (COVID-19) helpline if you cannot pay any other tax bills because of coronavirus.

Small and medium sized businesses and employers will be able to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. This refund will cover up to 2 weeks’ SSP per eligible employee and apply to employers with fewer than 250 employees.

You can find out further information on how to make a claim for SSP.

The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic. 

From 6 April until 31 December 2021, businesses can apply for loans and overdrafts between £25,001 and £10m and invoice finance and asset finance between £1,000 and £10m. The government will provide an 80% guarantee to lenders.

Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.

No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security

The Chancellor has a £150m fund to allow communities to buy pubs, theatres, shops, or local sports clubs to prevent them from closing.

Most bidders will be able to access match funding of £250,000 but in some case, particularly for sports venues that have high costs, £1m will be available.

The government will launch a new UK-wide management programme, called Help to Grow, for 30,000 SMEs over three years.

It will be delivered through business schools with mentoring from professionals. It will run over 12 weeks with 90% of the costs subsidised by the government. 

Another UK-wide scheme will also launch in the autumn to help 100,000 SMEs to use software to improve productivity. It will offer a voucher covering up to half of the costs of approved software up to a maximum of £5,000, and free impartial advice, delivered through an online platform.

Arts venues in England, including museums and galleries, will be able to access £400m in funding through the Culture Recovery Fund to help them reopen.

From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:

• a 130% super-deduction capital allowance on qualifying plant and machinery investments
• a 50% first-year allowance for qualifying special rate assets

It will allow companies to cut their tax bill by up to 25p for every £1 they invest.

Find out more about the 'Super-deduction' tax incentive.

The government will extend and increase the payments made to employers in England who hire new apprentices.

Employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire. This is compared with £1,500 per new apprentice hire (or £2,000 for those aged 24 and under) under the previous scheme.