Here are some quick highlights of the Budget 2021 as they relate to businesses:
100% Business Rates relief to continue for first 3 months (April to June) then business rates will be discounted by 2/3 until 31 March 2022.
Restart grants for businesses – up to £6,000 for non essential retail; Up to £18,000 for hospitality, leisure, personal care and gyms
VAT for hospitality to stay at 5% until end of September, then 12.5% until 31 March 2022
New recovery loan scheme (80% government guarantee) available until the end of the year from £25k to £10m
- Help to Grow scheme launched to help small and medium sized businesses in two parts
- Help to Grow: Management – an Executive Development programme to improve business performance and growth potential
- Help to Grow: Digital – free online advice and money off software to save time and cut costs
- Furlough to be extended to the end of September with the Government paying 80% of employees’ wages for hours they cannot work with employers contributing 10% in July and 20% in August and September
Apprenticeship incentive payment doubled to £3,000
- Minimum wage to increase to £8.91 an hour from April
- Self employment grants to continue with those previously ineligible possibly able to claim.
Corporation tax to increase to 25% from April 2023 for businesses with profits over £250,000. Small profits rate of 19% for businesses with profits less than £50,000. Taper from £50k to £250k.
In addition the following announcements were made in the budget
- Income tax: the tax allowance to be frozen at £12,570 and higher rate income tax threshold frozen at £50,270 until 2026.
- Alcohol and fuel duty frozen
- Stamp duty holiday on house purchases of up to £500,000 to be extended to 30 June
- £20 weekly uplift in Universal Credit to be extended for six months
- One off payment of £500 for Working Tax Credit claimants
- Tobacco duties to rise by inflation + 2%