Information on the 2021 budget announcements

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Budget 2021 announcements:

 

  • SEISS 4th and 5th grants

    • The 4th grant will be available from late April, HMRC will get in contact mid-April to provide individuals with their claim date. The claim will be based on the 19/20 tax return figures, meaning self-employed individuals who started trading in that tax year will now be eligible. The claim will be for 80% of 3 months average trading profits, capped at £7,500.

    • The 5th grant will be available from late July. The value of this grant will depend on the level that turnover has reduced in the 20/21 year. It will be:

      • 80% of 3 months average trading profits, capped at £7,500 if turnover has reduced by 30% or more

      • 30% of 3 months average trading profits, capped at £2,850 if turnover has reduced by less than 30%

  • Reduced VAT rate extended

    • The VAT cut to 5% for hospitality, accommodation and attractions will be extended to 30th September 2021.

    • The rate will then increase to 12.5% until 31st March 2022.

  • Restart Grants

    • Non-essential retail will receive up to £6,000 per premises.

    • Gyms, leisure, personal care, accommodation and hospitality businesses will receive up to £18,000.

    • The sum you’ll receive is based on your rateable value.

      • If your rateable value is £15,000 or less, you can claim up to £8,000

      • If it’s between £15,000 and £51,000, you can receive up to £12,000

      • If your rateable value is over £51,000 then you can claim up to £18,000

  • Furlough extension

    • The furlough scheme has been extended to the 30th September 2021 with employees receiving 80% until that date.


    • From July 2021, the scheme changes as follows:

      • June 2021 Government contribution 80%, Employer contribution 0%

      • July 2021 Government contribution 70%, Employer contribution 10%

      • August 2021 Government contribution 60%, Employer contribution 20%

      • September 2021 Government contribution 60%, Employer contribution 20%

  • Super deduction for companies investing in assets

    • From 1st April 2021 until 31st March 2021, companies investing in qualifying new plant and machinery assets will be able to claim:


      • a 130% super-deduction capital allowance on qualifying plant and machinery investments

      • a 50% first-year allowance for qualifying special rate assets

  • SDLT cut extended

    • SDLT cut extended to 30th June 2021

    • From then, SDLT will be payable over £250,000 until 30th September 2021

  • Employment income announcements

    • From 1st April, the National Living Wage will rise to £8.91 per hour for those aged 23 and over.

    • Personal tax thresholds:

      • the personal allowance will increase for the 21/22 tax year to £12,570

      • the basic rate limit will increase to £50,270

      • both will be frozen at those rates from April 2022 until April 2021

  • Recovery loan scheme

    • Financing available for UK companies through the next stage of recovery:

      • loans between £25,001 and £10 million

      • invoice finance between £1,000 and £10 million

  • Mortgage guarantee scheme

    • The scheme will allow all UK homebuyers to secure a mortgage of up to £600k with a 5% deposit.

  • Corporation tax increase from 2023

    • The rate of corporation tax will change from 2023 as follows:

      • Businesses with profits of £50,000 or less, will continue to be taxed at 19%.

      • Businesses with profits greater than £250,000 will be taxed at the full 25% rate.

      • Businesses with profits in between £50,000 and £250,000 will be taxed at a tapered rate.

  • Loss carry back relief extended

    • Losses of up to £2 million can be carried back up to 3 years

    • Relevant for accounting periods ending between 1st April 2020 and 31st March 2022