Here are some of the key points from one of the most anticipated Budget in UK history:
The Furlough scheme has been extended up to September 2021, employees will continue to receive 80% of their monthly wage of hours not worked subject to the £2,500 gross maximum. Employers will be expected to pay 10% of the hours not worked from July 2021 and in August and September 2021, 20% of the wage of hours not worked.
The Self Employment Income Support scheme has also been extended up to September 2021. For the fourth grant, HMRC requires a 2019.20 tax return to have been filed. The rest of the criteria is the same as that of the third grant.
Extension of the Film & TV Production Restart scheme in the UK, with an additional £300 million pounds to support theatres, museums and other cultural Organisations in England through the Culture Recovery Fund.
The reduced rate of VAT of 5% for hospitality, accommodation and attractions has been extended up to the end September 2021, then 12.5% until March 2022.
Eligible businesses will benefit from business rates reduction. 100% relief until June 30 2021, then 66% relief until March 2022 capped at £2 million per business for properties that were required to close on 5 January 2021, or £105,000 per business for other eligible properties.
Temporary extension of losses carry- back for businesses
Businesses that have incurred trading losses in financial years 2020-21 and 2021-22 will be able to carry back losses of up to £2 million to the previous 3 years. Normally, businesses are allowed to carry losses back for the previous 12 months.
A new Recovery Loan scheme to make loans available between £25,001 and £10 million, to help businesses of all sizes has been announced. This is set to run until 31 December 2021. The government will guarantee 80% of the loan amount.
From April 2021 to March 2023, businesses investing in qualifying new assets (Plant and machinery) will benefit from a 130% first year allowance.
The Annual investment allowance will remain at 100%. up to 31 December 2021
Help to grow
The government will subsidise 90% of the cost of management courses to help Small business upskill. Conditions apply of course.
The government will subsidise productivity software for Small businesses up to 50% for a maximum cost of £5,000.
Rates and Thresholds
The personal allowance has been increased to £12,570, the basic rate will apply to the next £37,700 of income and the higher rate of tax will apply to income from £50,271. These amounts will then be frozen until April 2026.
There will be no increase to the VAT registration threshold until April 2024.
The Capital gains annual exemption has also been frozen until April 2026.
Inheritance tax thresholds will be kept at their current levels until April 2026.
Corporation Tax rates set to increase from April 2023.
This is set to increase up to 25% for businesses with profits of £250,000 and over. It will increase incrementally for businesses with profits between £50,000 – £250,000.
A small business rate has been introduced which will remain at 19% for businesses with profits of below £50,000.