Suank’s budget speech naturally split into two parts which will effect our clients. Here is the lowdown.
We will continue to post responses to our clients most common questions on this page, so stay tuned for details.
More information will be released by our team on the links below as we have more information to give,
First Part of Budget
- Furlough extended to the end of September 2021. 80% will continue to be the rate given to employees. From July 2021 Employers will have to contribute 10%, and August 20%.
- Fourth Grant – Feb 2021 to April 2021 – 80% of average trading profits and fifth SEISS Grant announced – May 2021 to July 2021.
- Those who have recently started self employment on the 5th April 2020 return and if they filed a personal tax return by the 2nd March 2021 they can be considered for the fourth and fith SEISS grant.
- Universal Credit top up of £20 per week to continue for six months.
- The Restart Programme announced
- Mortgage Guarantee Scheme – will help home buyers purchase properties worth up to £600,000 with a deposit of just 5% with the government underwriting the other 95%. “Generation Rent to Generation Buy”
- Hospitality and Leisure and Personal Care and Gym’s – Re-opening Grants of up to £18,000 announced to support the re-opening later this year.
- New Minimum Wage Rates introduced.
- New Recovery Loan Scheme – From £25,000 to £10millions pounds up to the end of this year. The Government will guarantee 80%.
- 5% Reduced Rate VAT will be extended to the 30th September 2020 for those in the hospitality and leisure sector . Then there will be 12.5% until April 2022.
- SDLT reduction extended and will end on the 30th June 2021. Then the NIL rate will remain until the end of September 2021.
Second Part of Budget
- No announced rate increase of Income tax, VAT. The Personal allowance will be frozen at £12,500. This in effect is a tax increase because national minim wage and inflation will mean rising costs, but static tax allowances given.
- In 2023 – The rate of Corporation tax will increase to 25%. (From April 2023) Plus small profits rate.
- Carry back losses can be carried back for up to 3 years
- New Superdeduction announced.
- Help to Grow – Government will contribute towards 90% of the cost of world leading management consultancy. See more information at: https://helptogrow.campaign.gov.uk/
- Unsponsored points based Visa applications announced.