Autumn Budget Summary 2021

The budget was announced today, and there were a few announcements, but generally speaking for the average working person, there won’t be any changes.


The biggest announcement was regarding National Minimum/Living Wage. This will be increased next year (April 2022) to £9.50 from it’s current rate of £8.91 for 23 year olds and over.


If you have staff, then this is something that you need to keep an eye on, as you may currently pay them £9.00 an hour (just above minimum wage), so this increase would affect you. You should also review any staff that are on salaries and ensure that you are still in line with National Minimum Wage.


Business Rates

It was announced that those that are in the retail, hospitality or leisure sectors will not have an increase in their business rates, and will receive a 50% discount for a further 12 months.


If you are claiming Small Business Rates Relief, then this will not have any effect on you.


Annual Investment Allowance

As previously announced there is currently a super deduction in place which offers 130% first year relief on main rate plant & machinery investments until 31st March 2023 for companies.


Also the threshold for Annual Investment Allowance of £1 million, which was due to end on 31st December 2021 has been extended to 31st March 2023.


Universal Credit

There have been changes to universal credit. The work allowance has been increased. This is the amount that you can earn before your Universal credit starts to be reduced. The work allowance is being increased by £500. And the taper rate has been reduced from 63% to 55%. So, now you would lose 55p in every £1.00 of income that you earn through a job. The theory behind this is that it will put you in a better position if you are working compared to if you are receiving Universal Credit.


Other announcements



Previous announcements that haven’t changed