Budget 2021

SEISS Grants

The Self-Employed Income Support Scheme has been extended with grants to cover February to April with another payment to cover May onwards. As before these grants will be worth 80% of average trading profits, up to £7,500.  The deadline of midnight last night applies to anyone submitting a 2019-2020 tax return, who has been previously unsuccessful in gaining financial assistance before now.

Furlough Scheme

The furlough scheme is to be extended until the end of September. No additional cost to Employers until July where the are required to pay 10% of wages, and the contribution will increase to 20% for August and September.

Corporation Tax

From April 2023 corporation tax will be 25%. To help protect small businesses a £50,000 small profits rate will be introduced, set at the current rate of 19%. Once a company’s profits rise above £50,000 a taper will apply, so that only businesses with profits above £250,000 will have to pay the 25% rate.

Super Deduction

From April 2021, for a two year period, companies can reduce their tax bill by 130% of the costs of investments.

VAT

5% reduced rate for hospitality will be extended to September, with a rate of 12.5% introduced until April next year.

Alcohol and Fuel Duties

Alcohol and fuel duties frozen again.

Business Rates Holiday

The businesses rates holiday for those in the hospitality and leisure sector will continue to the end of June, with a two-thirds discount offered for the remainder of the tax year. 

Restart Grant

Restart Grants to be offered to businesses in the hospitality, accommodation, leisure, personal care and gym sectors in England. These grants will be worth up to £18,000.

Recovery Loan Scheme

A new loan scheme, the Recovery Loan Scheme, will be launched. Loans under the scheme will have 80% of their value backed by Government. The loans offered under the scheme can range from £25,000 to £10m.

Stamp Duty

Holiday extended until the 30 June, with an interim threshold of £250,000 for three more months. From October, the threshold will return to £125,000.

Mortgage Guarantee

New 5% deposit mortgages.  

Universal Credit and Working Tax Credits

• The £20 increase to universal credit will continue for six months.
• Working Tax Credit claimants to be given a one-off payment of £500.

National Living Wage

The National Living Wage is to increase to £8.91 per hour.

Apprenticeships

The apprenticeship hiring incentive in England is to be extended to September 2021 and the payment will be increased to £3,000. Additionally, an extra £126m will be provided to fund 40,000 more traineeships in England for 16-24 year olds in 2021/22 academic year. 

Tax Evasion

£100 million pounds has been set aside for a new taskforce, employing at least 1000 new tax and fraud inspectors throughout the UK to tackle ongoing tax evasion and COVID funding fraud.

Inheritance Tax, Capital Gains Allowance and VAT Registration Threshold

No change for the 20/21 tax year