Important finance updates for small businesses

Business rates reliefs, government help to grow schemes and more.

There are some important updates that small businesses can take advantage of in the coming months, including a fifth SEISS grant, business rates reliefs for certain industries, and help to grow schemes. Read on to find out more.

Final SEISS Grant – Claim From July 2021

The fifth and final SEISS grant, covering May to September, will be available to claim from late July 2021.

The value of the grant will be determined by a turnover test, to ensure that support is targeted at those who need it the most as the economy reopens. People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. Further details are still to be announced.

Business Rates Reliefs For Retail, Hospitality And More

The government will continue to provide eligible retail, hospitality and leisure properties in England with 100% business rates relief from 1st April 2021 to 30th June 2021.

This will be followed by 66% business rates relief for the period 1st July 2021 to 31st March 2022, capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.

Nurseries will also qualify for relief in the same way as other eligible properties. Local authorities will be fully compensated for the loss of income as a result of these measures.

Corporation Tax Increase From April 2023

Corporation Tax will be increased to 25%, with a small profits rate of 19% (for profits under £50,000) to provide protection to the smallest businesses. There will be relief for businesses with profits under £250,000 so that they pay less than the main rate. In line with the increase in the main rate, the Diverted Profits Tax rate will rise to 31% from April 2023 so that it remains an effective deterrent against diverting profits out of the UK.

Help to Grow


Digital

A new UK-wide Help to Grow scheme will launch in the autumn to help 100,000 SMEs save time and money by adopting productivity-enhancing software, transforming the way they do business. This will combine a voucher covering up to half of the costs of approved software up to a maximum of £5,000, and free impartial advice delivered through an online platform.

Management

A £520m scheme starting in June 2021, could help 130,000 small and medium-sized businesses boost their productivity.

The UK-wide programme will be 90% subsidised by government, with the aim to upskill 30,000 SMEs in the UK over three years. Developed in partnership with industry, it will combine a national curriculum delivered through business schools with practical case studies and mentoring from experienced business professionals.

Read more here.

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