This is the first budget to be announced during the pandemic, after the usual November budget was replaced with a Spending Review. I will try to give you some of the highlights which will affect both you individually and in your business.
Some of the details are still a bit vague, but we will try to bring updates as we get them.
This has been extended to 30th September 2021. The government will continue to pay 80% of employees’ wages for hours not worked. Employers will be asked to contribute towards this – 10% in July, and 20% in August and September.
This grant has been extended for self-employed individuals and two further grants will be available. It has also been rolled out to include anyone who has submitted a Self-Assessment Tax Return before midnight on 2nd March 2021, so those that were newly self-employed in the 2019/20 tax year would not have been able to get the previous grants, they will now qualify.
The same rules will apply, in that you must be able to prove that you plan to continue trading beyond the end of the support.
Tax and VAT
- Personal Allowance tax allowance will be increased next year (2022) to £12,570, but then it will be frozen at this level until 2026
- High Rate Income tax threshold will be increased next year (2022) to £50,270, but it will then be frozen at this level until 2026
- There will be no changes to income tax, national insurance or VAT.
- The VAT registration threshold will remain at £85,000 turnover in a rolling 12-month period.
- The VAT rate of 5% will remain for hospitality, accommodation and attractions and will rise to 12.5% at the end of September until 31st March 2022 when it will return to 20%.
- This is set to increase for companies with profits above £250,000 to 25%.
- For those with profits of £50,000 or less, the rate will remain the same at 19%, and if your profits are between £50,000 and £250,000 there will be a marginal tax rate of somewhere between the two.
- This will be from 2023/24 financial year, so if your year end is 31st March, this will affect the profits in the Year Ending 31st March 2024.
Kickstarter Grant for hiring an apprentice will double to £3,000.
Restart Grants for the hospitality, accommodation, leisure, personal care and gym businesses in England. Up to £6000 for non-essential retail shops, and up to £18,000 for the other industries.
Minimum wage is set to increase in April 2021 to £8.91 per hour
Fuel Duty and Alcohol duty are frozen for another year.
Stamp Duty – The temporary cut to Stamp Duty has been extended until September 2021.
We’ll start combing through the details and keep everyone updated. If you have any queries regarding the announcement please email us and we’ll be happy to talk it through.