Budget Highlights 2021
Grants
- 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
- 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
Income
- 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%!
Other
- 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