Chancellor Rishi Sunak set out a Budget to protect businesses through the pandemic, fix the public finances and begin building the future economy.

The Chancellor once again pledged to do ‘whatever it takes’ during the COVID-19 pandemic and confirmed that the furlough scheme would be extended until September 2021 to support jobs through the crisis.

Mr Sunak also confirmed that the Self-Employment Income Support Scheme (SEISS) has also been extended, with two further grants this year. Claimable by the self-employed, including the newly self-employed from 6 April 2019, provided they have filed their 2019/20 tax return for by midnight on 2 March 2021,

The stamp duty nil rate band on residential properties in England up to £500,000 will continue until the end of June. It will taper to £250,000 until the end of September, and then return to the usual level of £125,000 from 1 October 2021.

To support businesses as they re-open following lockdown, £5 billion will be made available in restart grants. Non-essential retail businesses re-opening first will be eligible for up to £6,000 but the leisure and hospitality sectors, which have been worse affected and will re-open later, will be eligible for up to £18,000.

However, the rate of corporation tax will increase to 25% in April 2023 for companies with profits over £250,000, whilst retaining a Small Profits Rate of 19% for companies with profits of £50,000 or less.

The Chancellor also introduced a super-deduction for companies investing in qualifying new plant and machinery. Under this measure a company will be allowed to claim 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances.

Following the Chancellor’s announcement yesterday, the Job Retention Scheme has been extended until 30 September 2021.

From 1 July 2021 the scheme will begin to wind down, the different stages of the winding down process of the scheme are as follows:

1. Until 30 June 2021, the government will continue to pay 80% of the furloughed employees’ wages for the hours not worked.
2. From 1 July 2021, the government will pay 70% of the furloughed employees’ wages for the hours not worked, with employers required to make up the additional 10% of wages.
3. From 1 August 2021, the government will pay 60% of the furloughed employees’ wages for the hours not worked, with employers required to make up the additional 20% of wages.

Throughout all the changes to the scheme, the employees whilst furloughed, will continue to be entitled to 80% of their wages.

As under the current JRS, flexible furloughing will be allowed in addition to full-time furloughing.

Please do not hesitate to contact us if you have any queries with regards to the Job Retention Scheme.