Further to todays Budget announcements by the Chancellor we have extracted some key highlights which we think should be relevant to most of our clients.  Please note that this is not a complete extract and we will forward more details as soon as they are available.

Job Retention Scheme

  • Extended until 30 September 2021 with 80% wages covered
  • Employers expected to contribute 10% in July 2021 and 20% in August and September 2021 in addition to the employers NI and pension contributions.

Self Employed Income Support Scheme

  • Grant 4 grant will be available to cover February 2021 – April 2021
  • Grant 5 from May 2021 onwards
  • In addition to those who were eligible to claim previous grants Grant 4 and 5 will also be available to anyone who filed their 2019/20 tax return by midnight on 2 March 2021 – subject to meeting other eligibility criteria
  • Those whose turnover has fallen by more than 30% will get 80% grant
  • Those whose turnover has fallen by less than 30% will get 30% grant

National Living Wage

  • Increased to £8.91 per hour from 6 April 2021

Cash Restart Grants

  • Available in April 2021 to those who pay business rates
  • Non essential retail premises up to a maximum £6k
  • Hospitality and leisure premises up to a maximum £18k

Recovery Loan Scheme

  • Replaces the Bounce Bank Loan and Coronavirus Business Interruption Loan Schemes
  • Can borrow between £25k and £10m
  • Government will guarantee 80% of the loan

Business Rates Holiday

  • 100% rates holiday for 3 months April 2021 – June 2021
  • Two thirds discount for remaining 9 months

Hospitality Hotel and Holiday Accommodation Reduced VAT Rate

  • 5% reduced VAT rate extended to 30 September 2021
  • 12.5% from October 2021 – March 2022
  • then reverts to 20% from April 2022

Stamp Duty

  • £500k nil rate threshold extended to 30 June 2021
  • £250k from July 2021 – September 2021
  • £125k from October 2021

Mortgage Guarantee Scheme

  • Government will provide guarantees to lenders who provide mortgages with low (5%) deposits

Personal Tax Thresholds

  • From 6 April 2021 tax free allowance will increase to £12,570 and higher rate threshold to £50,270
  • To be frozen at these levels until April 2026

Corporation Tax

  • Will remain at 19% for all companies until April 2023
  • From April 2023 companies with small profits of less than £50k will pay a rate of 19% and companies with profits of more than £250k will pay 25%
  • There will be tapering relief for companies with profits between £50k and £250k
  • Losses for 2020/21 and 2021/22 can be carried back to offset tax liability for 3 years instead of 1 year
  • Super Deduction rate will enable tax allowance of 130% instead of 100% against investments in assets.

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