The Budget – Key Points
The COVID-19 Pandemic has left a huge impact on the economy, this week Chancellor Rishi Sunak announced his plans to rebuild the economy in the Budget. You can find out more information here, we have compiled the key points that are most important for you and your business
COVID Schemes and recovery grants
- Both the Coronavirus Job Support Scheme and the Self Employment Income Support Scheme have been extended to September 2021
- Restart Grants – Shops will be able to claim grants of up to £6,000 to reopen on the 12th April 2021, Hospitality and leisure will also be able to claim up to £18,000. These will be administered by local councils
- A new Recovery Loan Scheme ensures businesses can continue to access loans and other kinds of finance up to £10 million per business once existing COVID-19 loan schemes close
- To further support the cashflow of businesses, the government is extending the loss carry back rules worth up to £760,000 per company
- Beginning April 2021, a new tax break will cut companies’ tax bill by 25p for every pound they invest in new equipment
- Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.
- There is an extension to the VAT cut to 5% for hospitality and leisure sector across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
- “Making Tax Digital” will apply to all VAT registered businesses from April 2022 – VAT registered businesses are now required to follow MTD rules by keeping digital records and using software to submit their VAT returns
- There will be an increase in personal allowance in 2021/22 of up to £12,570 which will be frozen until at least 2026.
- The Higher Rate threshold was increased and frozen to £50,270
- There are no changes in the ISA subscription limit – you can put £20,000 a year into your ISA tax free.
- The Inheritance Tax nil-rate band will remain £325,000 for at least the next five years
- The Capital Gains Tax Annual Exempt Amount will remain at the rate of £12,300 (£6,150 for trusts) until April 2026
- The apprenticeship hiring incentive in England has been extended to September 2021 and has had increase of payment to £3,000.
- A new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
- The Community Ownership Fund will allow communities to invest to protect the assets that matter most to them such as pubs, theatres, shops, or local sports clubs.