The Chancellor, Rishi Sunak, delivered his budget last week and details of the help for businesses and the self employed are detailed below:
Furlough extended for 6 months until the end of September.
- The Government will continue to pay 80% of wages but employers will be asked to contribute 10% in July and 20% in August & September.
- The Self employed grant (SEISS) will also continue until end of September.
- Up to 600,000 more self employed people will be eligible for help as access to the grant is widened.
- £20 weekly uplift in Universal Credit will be extended until September.
- Working Tax credit claimants will also get a one off payment of £500.00
- The minimum wage will also rise from April to £8.91
What will the new help be?
Two further payments will be available for the self employed who are struggling to work because of Coronavirus. These two payments represent the fourth & fifth grants paid out by the Coronavirus self employed income support scheme (SEISS).
The fourth grant covers the three month period from February to April and is worth up to 80% of trading profits, averaged over 3 months up to £7,500 in total.
The fifth grant will cover May to the end of September, however, the amount available will depend on loss of income.
If your turnover has fallen by at least 30%, you can still apply for a grant of up to 80% of profits to a value of up to £7,500.
If your profits have fallen by less than 30%, you can apply for a grant up to 30% of profits capped at £2,850.
Who is eligible for the new payments?
Nearly a fifth of self employed people (600,000) missed out on previous grants because they had only just started working for themselves and could not prove their income status via their tax returns. But those who have completed tax returns for 2019/2020 financial year will now qualify as long as they have submitted their tax return by midnight on 2nd March 2021.
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