Chancellor Rishi Sunak has today set out the government’s budget. The key points relevant to driver and rider trainers are:
The fourth SEISS grant, to cover February, March and April, will now be worth 80% of trading profits for three months, capped at £7,500.
Applications for the fourth SEISS grant will open at some point in April.
More than 600,000 newly self-employed people will now be eligible to apply. Previously you must have filed a tax return for 2018/19 to apply, now those who’ve filed a 2019/20 return may also be eligible.
A fifth self-employed grant will be available, covering May to September.
The value of the grant will be determined by a turnover test. 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. The final grant can be claimed from late July.
The Universal Credit top-up of £20-per-week will continue for a further six months.
For self-employed people on Universal Credit the removal of the minimum income floor will last until August.
Corporation tax and business rates
Rishi Sunak says in 2023 he will raise corporation tax to 25%. He is creating a Small Profits Rate to ensure only businesses with profits of over £250,000 will be taxed at the 25% rate. The Small Profits rate is 19% for businesses with profits under 50k.
The 100% business rates holiday in England will continue from April until June
Fuel duty has also been frozen.
Bad news for small business limited company directors, no specific help was announced for this group. The chancellor has rejected the introduction of a Director’s Income Support Scheme.