Budget – Highlights 2021

Budget Highlights 2021


  • Furlough is to be extended to September 2021
    • 80% government grant available while 30th June
    • 70% government grant available July
    • 60% government grant available August and September
  • Self Employed Income Support Grants – now also available to the newly self employed that were not previously eligible, so long as your tax return was submitted by 28th Feb
    • All are eligible for the fourth and fifth grant
    • Fourth grant is 80%
    • Fifth grant is dependable on loss of turnover
      • Loss in turnover of greater than 30% equals a 80% grant
      • Loss in turnover of less than 30% equals a 30% grant
    • Restart Grants – to help businesses reopen in April
      • Non-essential businesses could be eligible to up to £6k grant
      • Restaurants and personal care businesses could be eligible to up to £18k grant
      • Sporting Institutions are also eligible for restart grants


  • Business Rates Holiday
    • 100% relief will remain while 30th June
    • Discounted by 2/3rds for the remaining year
  • VAT Hospitality and Tourism
    • 5% reduced rate to remain until 30th September
    • 5% interim rate until 31st March 2022
    • 20% from 1st April 2022
  • Apprentice scheme incentive is being doubled from £1,500 to £3,000, for any aged apprentice taken on
  • Recover Loan Scheme
    • Loans of £25k-£10m available with 80% government guarantee while the end of the year


  • Personal tax allowance is to increase to £12,570, from £12,500 from April 2021 and will remain this until 2026
  • Basic Rate threshold increasing to £37,700, from £37,500, from April 2021
  • Higher Rate threshold increasing to £50,270, from £50,000, from April 2021
  • National Minimum wage is to increase to £8.91 from April 2021
  • Universal credits to be increased by £20/week
  • Working tax credits to be awarded a one off payment of £500

Corporation Tax

  • Corporation Tax Rate is increasing from April 2023 to 25%, depending on profit levels
    • Those with profits less than £50k will remain at 19%
    • Those with profit between £50k-£250k will be taxed at a marginal rate
    • Those with profits over £250k will attract tax at the new rate of 25%
  • Losses can be carried back for up to 3years, maximum of £2m, to aid cashflow
  • Super Deduction – investments in equipment for example, can attract tax relief at 133%!


  • Stamp Duty Land Tax
    • £500k nil rate band remains in place while 30th June
    • £250k nil rate band then replaces this, while 30th September
    • £125k nil rate band from 1st October
  • Alcohol duties frozen
  • Fuel duties frozen
  • HMRC are recruiting over 1000 extra tax inspectors to review Covid-19 and Tax Evasion