2021 Budget – Key Provisions
The 2021 Budget, more than any other of recent times, is key to the recovery of the UK economy which has been hard hit by the effects of the Coronavirus pandemic.
The support offered by Government is to be extended but provisions are already being put in place to pay for that support.
Income Tax, VAT and National Insurance rates will not change
Tax Thresholds will rise this year but will then be frozen for five years. The tax free allowance will move to £12570 and £50,270 for higher rate tax payers.
MInimum wage will rise to £8.91 from April
Corporation Tax will rise to 25% on profits over £250,000, however for smaller companies with profits of less than £50,000 it will remain at 19%
Stamp Duty ‘holiday’ will stay in place until the end of June 2021
There will be no tax on house purchases of less than £500,000
Pension Life Time Allowances, annual Capital gains Tax exemptions and Inheritance tax thresholds will be frozen until 2025
No increase in alcohol duties
Fuel duty frozen
Tobacco duty to rise by 2% over inflation
COVID-19 Support Measures
The Furlough scheme is to be extended until September, employers will be asked to pay 10% in July, 20% in August and September.
Self Employed Support is to be extended until September.
The self employed support scheme is to be widened.
Universal Credit £20 per week uplift is to be extended for six months
Working Tax Credit claimants will receive £500 as a one off payment
Support for Arts venues in England
Support for Professional sport and grassroots football
Lower VAT rate for hospitality will remain at 5% until September then there will be an interim rate of 12.%% for six months
Contactless Payments will be increased to £100
Incentives for Apprenticeships
Investment costs can be deducted from Tax bills
Tax breaks for business investment
Restart grants for shops and other businesses which had to close
If you need help and advice on how the Budget provisions will affect you and your business give us a call.