Does The Budget Effect Your Business? - March 2021
This video is a brief summary of the March 2021 Budget.
More detailed videos to follow.
Please click to watch our short video or continue reading for the transcript:
Today is 3rd March 2021 and as we all know it is budget day.
Here are some quick highlights:
Firstly Covid-19 support:
The furlough scheme has been extended to 30th September 2021, that will be 80% of wages up to the end of June, 70% in July and 60% in Aug and Sept.
The 4th self employment grant will now include the figures reported on the 2019/20 Tax Returns, so that means newly self employed will be included, and in late July there will be a 5th grant although there will be a loss of turnover test.
A new Restart Grant available from April for businesses that have been forced to close.
A new recovery loan scheme in addition to Bounce back and CBILS
What about other taxes?
The 100% Business Rates Relief will continue from April to June, and then there will be up to two thirds relief after that until March 2022.
The 5% VAT rate for hospitality businesses will continue until 30th September, it will then drop to 12.5% until 31st March 2022.
The SDLT holiday will be extended – this means the level at which SDLT will be paid will remain at £500,000 until the end of June, then it will drop to £250,000 between July and September before reverting back to £125,000.
In Business Tax:
Corporation Tax will rise to 25% from April 2023, however the good news is that profits up to 50k will still be at 19%.
A company that makes losses will now be able to carry those back 3 years and get tax refunds.
And a big announcement was made that there will be a Super Deduction Allowance of 130% of the cost of investment in plant & equipment for 2 years.
And finally for now:
The income Tax and NI thresholds and rates and the VAT rates are frozen until April 2026.
The VAT registration threshold is frozen for 4 years.
A new mortgage guarantee scheme for those unable to afford more than a 5% deposit was announced.
Minimum wage will be increased to £8.91 from April.
Up to £250,000 funding will be made available for community groups to buy a pub or local business that is otherwise at risk of closure.
As always please let us know if you have any questions and look out for more short videos in the near future.