Here’s a brief summary of the Budget 2021

  • Furlough Scheme extended until September
  • Self-Employed Income Support Scheme (SEISS) will continue until September
  • Universal Credit uplift will continue for a further 6 months
  • National Living Wage increasing to £8.91 from April
  • ‘Re-Start’ Grant available from April of up to £6000 per premises for non-essential retail, up to £18,000 for the leisure sector
  • Recovery Loan Scheme – businesses of any size can apply for loans from £25k to £10m with 80% guaranteed by the Government
  • Business Rates holiday for 3 months and discounted for remaining 9 months for the leisure sector
  • Hospitality – 5% reduced rate VAT extended to 30th September, then an interim rate of 12.5% for 6 months
  • Stamp Duty Land Tax – £500k 0% rate will now end on 30th June, then reducing to £250k until 30th September. Returning to £125k on 1st October
  • Mortgage Guarantee for first-time buyers who put down a 5% deposit
  • No increase in Income Tax, NIC or VAT
  • Personal Allowance to be frozen at £12,570 until April 2026
  • Higher Rate threshold to begin at £50,270 for 2021/22, frozen until April 2026
  • Inheritance Tax, Capital Gains Tax and VAT thresholds will remain the same
  • £100m towards HMRC Investigators for tax evasion through falsified furlough claims
  • Corporation Tax to increase to 25% in April 2023
  • Rate will remain at 19% for Small Businesses with £50k profit or less, with a tapered rate up to £250k.
  • Tax losses of up to £2m can be carried back 3 years
  • Super deduction on company investment of 130% – eg. an investment in plant of £100k will attract a deduction for Corporation Tax purposes of £130k
  • Increase in spirits, wine and beer duties all cancelled
  • Fuel duty increase also cancelled

If there’s any aspect of the Budget you are unclear on, or need help with planning your business’s future based on the effects of the Budget, please do not hesitate to contact us on 01384 376964

Matthew Morris
Matthew Morris – Our Tax Partner and Key Contact


KEY CONTACT

Matthew Morris
Call 01384 376964

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