Summary Of UK Budget 2021

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Download Summary of UK Budget 2021 PDF

 

FURLOUGH SCHEME
  • Furlough scheme will be extended until September
  • No change to the conditions for employee
  • Businesses will be asked to contribute 10% in July and then 20% in August & September
SELF EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)
  • 4th Grant covering February to April – support at 80% of average profits
  • 5th Grant covering May to August depends on turnover decrease
  • 5th Grant – if turnover has decreased by 30% or more – support at 80% of average profits
  • 5th Grant – if turnover has decreased by LESS than 30% – support at 30% of average profits
  • Newly Self-Employed individuals who filed a 2019/20 tax return by midnight 2nd March 2021 will be eligible to claim the 4th & 5th
BUSINESSES
  • From April 2023, corporation tax will increase to 25% for businesses with profits above £250k
  • Small businesses (profits below £50k) will continue to be subject to 19% rate
  • Corporation tax rate will be tapered for businesses with profits between £50k-£250k
  • New Super-Deduction tax break – firms that invest in new equipment will be eligible to claim tax relief worth up to 130% of cost for the next 2 years
  • Corporation tax losses will be eligible for 3 year carry back (currently 1 year)
  • No rises for income tax, NIC or VAT rates
  • New Restart grant will be available from April
  • Non-essential retail business will receive grants of up to £6,000 per premises
  • Hospitality and leisure businesses will receive grants of up to £18,000
  • Recovery loan scheme – any business can apply for loans from £25,000 up to £10million – government will provide a guarantee to lenders of up to 80%.
  • Continuation of business rates holiday (100% from April-June 2021 & 67% from July to March 2022)
  • Reduced 5% VAT rate for Hospitality & Tourism industry to continue until 30th September 2021 and will increase to 12.5% until March 2022
  • 20% VAT rate for Hospitality & Tourism industry will return in April 2022
STAMP DUTY LAND TAX
  • Stamp Duty Nil Rate Band of £500k will be extended until end of June
  • From July until end of September, Nil rate band will be reduced to £250k
  • Pre-Covid Nil rate band of £125k will return from October
APPRENTICES
  • Doubling the incentive payments to businesses for hiring apprentices to £3,000
  • Applies to all new apprentice hires of any age
OTHER MEASURES
  • Universal Credit uplift of £20 to continue for another 6 months
  • Working tax claimants will receive a one off payment of £500
  • Government will provide a mortgage guarantee for first time buyers who can only afford a 5% deposit

Download Summary Budget 2021 PDF