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Budget 2021

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The Headlines

  • UK economy should return to pre-COVID levels by mid-2022
  • Furlough scheme extended beyond its current date of 30 April 2021 to 30 September 2021, with workers continuing to receive 80% of their pay, capped at £2,500 per month
  • Employers will be asked for a contribution of 10% from July and 20% in August and September towards the hours their staff do not work.
  • A fourth self-employment support grant will be available to claim from April – worth 80% of three months’ average trading profits, capped at £7,500. Grants will be determined on how much turnover has fallen.
  • SEISS is widened (for the 4th and 5th grants) to include those who became self-employed in the tax year 2019-20, provided they filed a tax return by 2 March 2021
  • A fifth SEISS grant will be made available from May onwards – claimable from July.
  • £20 Universal Credit uplift extended for a further 6 months with a one-off payment of £500.
  • From today, a doubling of the apprentice incentive payments given to businesses to £3,000 – that’s for all new hires, of any age
  • £300m additional funding for Culture Recovery Fund
  • £25,000 to £15m (80% gov guarantee) new Covid Recovery loans
  • 100% Business rates holiday until 30 June and then a discounted rate of relief
  • 5% reduced rate of VAT extended to 30 September – then an interim 12.5% rate until April 2022
  • The new £500,000 nil rate band for Stamp Duty won’t end on 31 March, it will end on the 30 June. Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September.
  • New government guarantee for mortgage borrowers
  • Personal tax thresholds, CGT IHT etc. limits all frozen until 2026
  • From April 2023 – Corporation Tax rate rises to 25% on profits from the current 19%. Small profits rate of 19% continues for profits below £50,000. Taper above £50,000 to £250,000
  • New 3-year carry back of losses
  • Super Deduction. For the next two years, businesses can claim 130% of their new machinery cost as a tax cut
  • All alcohol duties frozen for the second year in a row
  • Frozen fuel duty again
  • UK infrastructure bank to invest in private and public projects to promote the green economy.
  • Help to Grow: Digital will help SMEs to develop digital skills with free expert training and a 50% discount on new productivity-enhancing software
  • R&D Tax Relief and EMI schemes – new consultations
  • New visa reforms for highly skilled migrants
  • New Future Fund Breakthrough to help fill the scale-up funding gap
  • New levelling up fund for northern towns
  • 8 Freeports (including Plymouth & South Devon) – with simpler planning and easier tariffs