- 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.
