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Budget 2021

By March 10, 2021No Comments

Budget 2021 – Key Points 

 

Covid Support

Furlough Scheme

  • Extended till end of September 2021
  • Government to continue paying 80% till June
  • Employer will be asked to contribute 10% in July, 20% in August and September

Self Employed Income Support Scheme

  • Extended till September 2021
  • Anyone that couldn’t previously claim, can now claim so long as you have filed your personal tax return (due 28th Feb 21)

Universal Credit / Working Tax Credit

  • £20 increase in Universal Credit to continue for another 6 months
  • Working Tax Credit claimants will recieve a one-off payment of £500

Minimum Wage increased to £8.91 an hour from April 2021

 

Taxation

  • Income Tax, Vat and National Insurance – nothing changes
  • Stamp Duty holiday on house purchases extended till June 2021, no tax liability on sales of less than £500k
  • Inheritance Tax – No changes
  • Corporation Tax – Higher rate to be introduced on company profits from 19% to 25%
    • Rate to be kept at 19% for smaller companies with profits less than £50k
  • Personal Income Tax – Allowance to be frozen at £12,570 from April 2022-2026
  • Higher Rate Income Tax – Allowance to be frozen at £50,270 from 2022 – 2026

Businesses

  • Businesses will be able to deduct investment costs from tax bills, reducing taxable profits by 130%
  • Companies that take on an apprentice – grants to rise to £3000
  • Vat rate to stay at 5% for hospitality firms till September 2021
    • Vat rate to be 12.5% after September for another 6 months till April 2022
  • Tax on spirits – No increase for a second year running
  • Tax on fuel – no increase for a second year running
  • Business rate holidays to continue till June 2021, after which point a 75% discount will be introduced
  • Restart grants for shops and businesses that were forced to close
    • £6,000 per premises for non-essentials that will re-open in April (as per the roadmap)
    • £18,000 for Gyms, Personal Care businesses and other hospitality and leisure businesses
  • New VISA scheme to help start-up companies and grow tech firms
  • Contactless payments to rise to £100

Loans

Following the end of the BBLS and CBILS loan scheme, the government will now launch a Recovery Loan Scheme

  • Any business can apply
  • You can borrow from £25,000 – £10,000,000
  • The Gov will guarantee the new loan scheme 80%

Mortgages

The government will launch 95% mortgages to help first time buys get themselves on the property ladder, with a host of lenders already starting to offer this product following on from the budget and a lot more to follow.