What does the Budget means for Recruiters?
To protect the jobs and livelihoods of the British people was how the Spring Budget was marketed. So how will the latest Budget announcements help Recruiters?
Covid-19 Support Packages
• The latest Budget brings in an extension to the CJRS (Furlough scheme) until the 30th September 2021 with the intention this will save more jobs. The eligibility for the furlough scheme has also been amended to include, from 1 May 2021 onwards newly eligible employees who were employed on 2 March 2021, as long as a payment of earnings was reported on RTI between 20 March 2020 and 2 March 2021.
• There will be a new business support loan scheme running from April 2021 until the end of the year. This scheme will offer loans of between £25,000 and £10mil. However, these will only be 80% guaranteed and likely to be on preferential terms. The scheme will be open to all businesses, including those who have already received support under the existing Covid-19 guaranteed loan schemes.
• An extension and increase to the payments made to employers in England who hire new apprentices of all ages. Employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire.
• Contactless payments will be rising to £100 once businesses have had the chance to update their systems.
Taxes
• Any business that took advantage of the original VAT deferral on VAT returns from 20 March through to the end of June 2020 can now opt to use the VAT Deferral New Payment Scheme to pay that deferred VAT in up to eleven equal payments from March 2021, rather than one larger payment due by 31 March 2021. For more info and to sign up visit here
• Personal allowances are frozen at current rates until 2026.
• Companies will be able to carry any losses occurring in 2020-21 and 2021-22 back three years to offset against profits instead of one.
• Current Corporation tax rates to remain the same until March 2023. Then from April 2023, the Corporation tax remains at 19% for business profits under £50,000 only. This will be s slight increase in the rates for profits between 50,000 and £250,000 up to a maximum of 25% for profits earned over £250,000. We will be looking into how this will work when further information is released.
• A capping the amount of SME payable R&D tax credit that a business can receive in any one year at £20,000 (plus three times the company’s total PAYE and NICs liability).
• There was no mention of IR35 or off-payroll working tax in the Budget and a further delay is not expected. The Finance Act will be published on 15 March.
Unfortunately there was no support offered for small limited companies which are yet to receive any help at all.
The Recruitment Industry plays a huge part in accelerating recovery and boosting UK productivity. These recent months have only reinforced the importance of quality recruitment services. This Budget Summary touches on some of the key areas we think are relevant to Recruiters. If you would like any further information on the topics covered or anything else raised in the March Budget, please do get in touch!
Cooper Curtis help Recruiters earn more money by getting better systems in place and freeing up their time. If you would like to chat with us to see if our services can help you, please click the button to book a 10-minute chat.
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