State support for small businesses on the slide

Government aid for small firms is winding down. Make plans now.

Small businesses and self-employed workers claiming support from the government have some planning to do. The Job Retention Scheme (JRS) and the Self-Employment Income Support Scheme (SEISS) will both now become less generous and will end in October and August respectively.

The JRS allows companies to lay staff off for a period – put them on furlough – but continue paying them by claiming up to 80% of wage costs from the government. This support is available until the end of July, but while the JRS will then continue until 31 October, employers will be expected to contribute more, according to plans set out last week by chancellor Rishi Sunak. In August, they’ll be asked to pay employers’ national insurance contributions and pension contributions, which the JRS currently covers. In September and October, the government’s contribution to wages will fall to 70% and 60% respectively.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.