As we reach the month in which, under the Prime Minister’s original ‘roadmap’, we are meant to be returning to normal life (although whether this will happen remains to be seen), as it stands, the various methods of financial support that have been available are starting to wind down. So, here we list the upcoming changes to the different support packages.
Furlough
It has now been over a year since the original furlough scheme was introduced, and June 2021 is the last month in which the full 80% of employee’s salary can be claimed from the government, as it is gradually being wound down by 30th September 2021.
– In July 2021, the government will contribute 70% of the employee’s salary, with employers contributing 10%.
– In August and September 2021, the government will contribute 60% of the employee’s salary, with employers contributing 20%.
Self Employment Income Support Scheme (SEISS)
The government have just released some more information regarding the fifth and final SEISS grant, which will cover from 1st May to 30th September. If eligible, HMRC will contact you in mid July to let you know when you can claim (with claims opening from late July).
The amount that can be claimed will be determined by a turnover test comparing your 20/21 profits with the pre pandemic period, as well as your average monthly profits. If your turnover has fallen by 30% or more, then you will be able to claim the full grant of 80% of three months’ average trading profits (maximum £7,500). If it’s fallen by less than 30%, you will only be able to claim a grant of 30% of three months’ average trading profits (maximum £2,850). To be able to claim, you must have traded in both 19/20 and 20/21, filed a 19/20 personal tax return, earn at least 50% of your total income from self employment, be able to prove that the pandemic has impacted your business negatively and confirm that you intend to carry on trading.
HMRC haven’t specified how ‘average profits’ will be calculated yet, but detailed guidance is due to be issued by the end of this month.
Recovery Loan Scheme
Replacing the Bounceback Loan and Coronovirus Business Interruption Loan schemes is the Recovery Loan Scheme, which is available until 31st December 2021. If you are trading in the UK, and can show that a) your business has been negatively impacted by the pandemic and b) your business would be viable if it weren’t for the pandemic, you may be able to apply for a loan of between £25k and £10million, with the government guaranteeing up to 80% of the loan value.
Universal Credit
The £20/week additional uplift is due to end on 30th September 2021.
Test and Trace Support Payment
If you are told to self isolate by NHS Test and Trace, and are on a low income, you may be able to claim a support payment of £500. The hoops to jump through for this one are relatively extensive- full details can be found here.
PaperRocket Accounting provide accounting and tax services to professional contractors, freelancers, and small businesses working in the UK.
We offer our clients a flexible choice of fixed fee monthly packages which cover all of their accounting and tax needs (so no hidden costs or surprise bills!). All of our accounting packages include a monthly subscription for a cloud accounting software subscription provided by the awarding winning FreeAgent.
Each of our clients is given their own dedicated qualified accountant with unlimited access in person, telephone, or by email.
We pride ourselves on our client satisfaction and customer service and were awarded ‘Best Contractor Accountancy’ firm 2020 in The Contracting Awards and ‘Welwyn Hatfield Business of the Year 2019’ in the SME Hertfordshire awards.
To find out how we can help you please get in touch now.
