UK chancellor extends furlough scheme to end of September, with concessions on rates and VAT

Martin Fullard | CMW

The UK chancellor of the exchequer has confirmed that the furlough scheme will be extended to the end of September 2021. In his Budget announcement, 3 March, chancellor Rishi Sunak told the House of Commons that the furlough scheme will continue to pay 80% of peoples’ wages for hours not worked until 30 September. From July, employers will be expected to contribute 10% of this support themselves, rising to 20% in August and September. The chancellor confirmed that the 100% rates holiday would remain until the end of June, reducing to two-thirds for the remainder of the year. “For the remaining nine months of the year, business rates will still be discounted by two-thirds, up to a value of £2m for closed businesses, with a lower cap for those who have been able to stay open,” he told the House of Commons, 3 March. On VAT, Sunak confirmed the 5% reduced rate of VAT will be extended for six months to 30 September followed by interim rate of 12.5% for another six months. The standard rate will not return until April 2022. Corporation Tax Corporation Tax (which is a tax on profit) will rise to 25% in April 2023, which...

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