A surprise announcement from the Chancellor this afternoon confirmed that the Job Retention (furlough) Scheme will be extended for a further month – until the end of April 2021.
Just as importantly, the Chancellor took the opportunity to confirm that the next Budget, which had been scheduled for this autumn, will now take place on 3 March 2021. There was no 2020 Budget and this time around, it is expected that tax rises will feature, in order to pay for the measures taken through Covid.
If you are looking at extracting further cash from your business or making any capital disposals, we would urge you to think about this sooner rather than later. Usually, changes announced take effect from 6 April following, but sometimes, changes can be implemented from that day, especially if the Chancellor wants to deny people the chance to do anything before rates change.
Today’s update from Mr Sunak also revealed that the government’s contribution to the furlough scheme will continue at the current rate of 80% for hours not worked, meaning that employers will only have to pay National Insurance and pension contributions for any employees on furlough until the end of April.
In a bid to offer some certainty for businesses ahead of a difficult Christmas period, the government’s Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme (CBILS) have also been extended – and will now be available until the end of March. Accessing the loans was due to close at the end of January.
As ever, we’re here to support you, please get in touch for further advice.
As a reminder, here’s the key dates for furlough claims in 2021 – you can read more here.
|Claim for furlough days in||Claim must be submitted by|
|December 2020||14 January 2021|
|January 2021||15 February 2021|
|February 2021||15 March 2021|
|March 2021||14 April 2021|
|April 2021||14 May 2021|