Budget 2021 Summary

Following Today’s Announcement from the Chancellor

We summarise below the key points announced by the Chancellor in today’s Budget…

If you have any queries, please do not hesitate to contact us.

  • Furlough will continue until September, with no change of terms. After July, businesses will be asked for a 10% (70% grant receivable) contribution, rising to 20% in August and September (60% Grant receivable).
  • Universal credit uplift of £20 a week will also go on until September.
  • The National Living Wage will rise to £8.91 from April.
  • Non-essential retail businesses will receive grants of up to £6,000 per premises. Hospitality and leisure businesses will get grants of up to £18,000.
  • Business rates holiday will be extended through to the end of June.
  • The 5% reduced rate of VAT will be extended for six months to 30 September, followed by interim rate of 12.5% for another six months. The standard rate will return in April next year.
  • The up-to-£500,000 “nil-rate band” for stamp duty will finish at the end of June.
  • First-time buyers will get a “government guarantee” on mortgages, with a deposit of 5%. Many big lenders are already backing the scheme.
  • The income tax threshold for paying the basic rate will rise to £12,570 next year. For higher-rate payers, the threshold will be £50,270. Both rates will stay the same until 2026. The rates of income tax, national insurance or VAT will not be raised.
  • The VAT registration threshold will remain at £85,000 until 2024.
  • In 2023 corporation tax will raise to 25%; only businesses with profits of over £250,000 will be taxed at the 25% rate.
  • Planned increase on alcohol duties will be cancelled.
  • Fuel duty will be frozen.
  • A £150m fund will be set up to allow communities to take ownership of pubs, theatres, shops or sports clubs at risk of closure.
  • “Super-deduction” – a tax break for firms that invest. It will allow firms to reduce their tax bill by 130% of what they spend on investment. Under the current rule means a firm spending £10m on equipment gets a £2.6m tax reduction. Under this plan, it would get one worth £30m, he says.

Please be assured, once again, that we are only a phone call away, and do not hesitate to contact us if we can be of any assistance.

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