Budget 2021: COVID-19 measures

COVID-19 support; key measures included in Budget 2021 are as follows.

Coronavirus Job Retention Scheme (CJRS)

• The CJRS is extended to 30 September 2021.
• The scheme will continue in its current form until 30 June 2021.
  • Employees will receive 80% of their normal salary for hours not worked.
• From 1 July 2021 employers will be asked to contribute towards the cost of unworked hours. These contributions will be:
  • 10% in July 2021 (up to £312.50).
  • 20% in August 2021 (up to £625).
  • 20% in September 2021 (up to £625).
• The scheme will cease on 30 September 2021.
• See COVID-19: Coronavirus Job Retention Scheme (CJRS) from 1 November 2020

Self-Employment Income Support Scheme (SEISS)

• A fourth SEISS grant will be paid based on 80% of three months’ average trading profits, capped at £7,500 in total.
  • This is paid in respect of February, March and April 2021.
  • Individuals must have submitted a 2019-20 tax return by 2 March 2021 to be eligible.
  • Other eligibility criteria will be as for the third SEISS grant.
  • Claims can be made from Late April 2021 until 31 May 2021.
• A fifth SEISS grant will be made available over the summer covering May to September.
  • The grant value will be determined based on a turnover test in the year April 2020 to April 2021.
  • Traders whose turnover has decreased by 30% or more will receive the full grant worth 80% of three months’ average trading profits, capped at £7,500 in total.
  • Traders whose turnover has decreased by less than 30% will receive a 30% grant, capped at £2,850.
  • Claims can be made from late July 2021.

Taxation of SEISS grants

• Legislation will be introduced to tax SEISS grants received on or after 6 April 2021 in the year of receipt.
  • The exception in the case of a payment made to a partner distributed among the partnership will be unchanged.

See COVID-19: SEISS

Recovery Loan Scheme

• The Recovery Loan Scheme will be available to businesses from 6 April 2021.
• Businesses will be able to access loans of between £25,000 and £10 million, with a guarantee of 80%.
• Businesses who have received support under existing COVID-19 loan schemes will be eligible.
• See COVID-19: Loan funding

Restart Grants

• Restart Grants will be made available in England. These will be:
  • Up to £6,000 per premises for non-essential retail businesses.
  • Up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses.
• A further £425 million of discretionary business grant funding will be available from public authorities in England.

Useful guides on this topic

Budget 2021: At a glance
A summary key budget announcements together with items published without announcement.

Budget 2021: Subscriber guide
A detailed guide with links to more detail on all the key topics for SMEs and their owners.

COVID-19: Coronavirus Job Retention Scheme (CJRS) from 1 November 2020
What is CJRS?  When does the CJRS apply?  How to claim CJRS?  How to calculate CJRS claim amounts?

COVID-19: Self-Employment Income Support Scheme (SEISS)
COVID-19: Self-Employment Income Support Scheme (SEISS). Support for the self-employed during the Coronavirus crisis.

COVID-19: Loan funding
COVID-19: different types of loan funding. All loan funding is repayable. 

COVID-19: Grant funding for business
What cash grants are available to support businesses during the Cornonavirus crisis?