2021 Budget - A Summary
(all that is listed below is based on my interpretation of the chancellors budget speech)
Furlough scheme to be extended to end of September 2021 at 80% of salary / wages for hours not worked.
From July employers will contribute 10%, for September & August it will be a 20% contribution.
Corporation tax will rise in April 2023 from 19% to 25% for companies making profits over £50k per year.
For profits from £50k to £250k there will be taper, meaning only the bigger companies will pay the 25%.
Hospitality & tourism - VAT rate to stay at 5% until 30th September, then an interim rate of 12.5% for another 6 months, going back to 20% by April 22
Losses can be carried back 3 years with a tax refund to give a cash flow benefit
Apprentice hiring grant - this will be doubled to £3k for a new apprentice hire of any age.
New re-start grant - to help non-essential retail to re-open - grants of up to £6k per premises and up to £18k for those who open later
Business rates holiday extended to June 21, with a further discounted rate of 2/3 for the rest of the year. With a lower cap for those businesses who remained open.
Loans - BBL and CBILs finish in April and will be replaced by a new recovery loan scheme - for any business size, offering loans from £25k to £10m with the goverment providing a guarantee of 80%.
Self-employed support will continue to the end of September - a 4th grant for April to June and a 5th grant for July to Septembe will be made at 80% of average profit.
If turnover has fallen by more than 30% or more then the full 80% is available, if turnover fell by less than 30% then the grant is for 30%
Newly self employed who couldn't claim before can now claim this 4th and 5th grant if they filed a tax return by last night.
Universal credit uplift will be extended for another 6 months to the end of September.
VAT registration threshold will stay at £85k until 2024.
National Living Wage increases to £8.91 from April.
No rises in PAYE, VAT or National Insurance
Higher tax rate to increase to £50,270 in 2021 then remain there until 2026
Inheritance tax, capital gains and pension allowances to remain the same until 2026
Stamp duty holiday to continue to end of June.
Fuel duty - no increase!
Contactless limit increases from £45 to £100
Capital investment "Super Deduction" - you can claim 130% of capital to fuel investment in growth
Help to grow management - 90% of new courses funded by business schools - a new exec development program
Help to grow digital - 50% to get expert training up to £5k