The 2021 Budget took place on 3rd March 2021. Here are some of the highlights as they relate to businesses:
100% Business Rates relief to continue for the 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 the 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 of 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%
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