Chancellor Rishi Sunak set out the government’s budget. The key points relevant to driver and rider trainers are:
SEISS
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.
Universal Credit
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.
No specific help was announced for small business limited company directors. The chancellor has rejected the introduction of a Director’s Income Support Scheme.
12 thoughts on “Fifth SEISS grant announced in budget”
Have you thought to ask Mr Sunak why he missed out three months These payments were all in arrears last payment in December yet we have to till May for 4th payment nearly 6 months while NOT being allowed to work
Very good question Kenny. I think Martin Lewis is on the case but I doubt it will make any difference. It’s certainly causing major financial difficulties for many of us.
It was never about a virus. Let’s wait for the real show to unfold!
The fifth grant has confused me.
“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.”
Fallen by 30% of ‘what period compared to what period’? April 2021-July 2021 compared to 19/20? Or 20/21 compared to 19/20? Or 20/21 compared to an average of the previous 4 years?
It would be very interesting how many instructors like me have not been able to benefit so far from the Seiss scheme. As income ie state pension exceeds employed income.
Even though commitment to maintaining my status requires all the costs as in any year with no income to cover ie insurance. Fees/finance/ ADI registration, to name only a few, none of which is refunded.
Well said Brian,
This applied to me also – basically because I have a pension, I get nothing, yet the car’s depreciation and other expenses such as ADI insurance still need to be paid at some point.
Kenny young, you are spot on! Why does feel as if Rishi is punishing the self employed? Pay up Rishi! And when is the DVSA going to conform when testing will begin?
We need to get the 4th grant earlier than late April. We are not working since December so I believe most of us struggling to meet regular ongoing bills and payments. If you could ask Mr Sunak to Release SEISS 4th grant sooner.
We have mortgages to pay and bills, we as instructors are all self employed.
We all haven’t worked since December he expects us to wait until late April early May, I think its disgusting. Especially that all Instructors including myself bought masks and sanitiser etc all equipment needed to make our cars safe.
We even had to wait outside in the cold when our pupils went on their tests. We did everything what was asked of us and still ended up not working.
When mini cabs were allowed to work. In my opinion they were a greater risk than we were.
I think its unfair that the instructor industry has suffered badly. Now we all have to wait with people struggling to pay bills etc.
I hope Mr sunake understands our plight.
What will the Fifth SISS grant be based on because the drop in our income due to the pandemic occurred in 2020 which will show in our return tax year 2020/2021.
The 20/21 return may well not be submitted until December 2021, many instructors may well have not submitted their return by September 2021 let alone July (perfectly legally, as they do not need to be submitted until December 2021)
I’m really disappointed for a few reasons
As Ken young has mentioned we are expected to just shut up and be grateful.
Many instructors are out breaking the COVID rules by teaching simply because they are paying a lease vehicle a mortgage and all the normal bills,
But not only is our grant ( which we are happy to receive as a life saver). Payed in arrears but they have worked it to run in line with the new tax year ,,,or next year’s allowance..
Applied for a grant myself as an independent driving instructor since 2002 filled in all the forms on line, double checked by my accountant, reply came back that i was not entitled to any grants as i had registered as a Limited Company through Companies House.
Thank Goodness i learnt many years ago through Amway Network Marketing to plan for disasters of nil funds from usual source of income but, how the tables have turned my marketing has really taken off with people doing more and more on line shopping, an absolute life saver.