Spring Budget March 2021 Key Points
On Wednesday 3rd March 2021 the UK Government published its Spring Budget. Whilst the budget announcement addressed a wide range of issues, we have picked out some of the key points which may affect your business:
• The coronavirus Job Retention Scheme has been extended to September 2021. Employers will be expected to contribute 10% for July and 20% for August and September
• The Self Employment Income Support Scheme (SEISS) has also been extended to September 2021, with those who were submitting a tax return for the first time in 2019/20 now being eligible for the grant too
• The Personal Allowance will increase to £12,570 for 2021/22 and will be frozen until at least 2026
• The higher rate threshold will increase to £50,270 for 2021/22 and will be frozen until at least 2026
• Corporation Tax main rate will be set at 25% for the financial year beginning 1 April 2023
• A small profits rate of Corporation Tax of 19% for the financial year April 2023. The small profits rate will apply to profits of £50,000 or less.
• Companies with profits of between £50,000 and £250,000 will pay Corporation Tax at 25% but will be able to claim marginal relief
• A new Recovery Loan Scheme will be introduced to make available loans between £25,001 and £10 million
• The additional £20 per week Universal Credit payment has been extended for another six months
• Lower VAT rate of 5% within the hospitality & accommodation sector has been extended until the end of September 2021, when it will be replaced by a 12.5% rate for a further 6 months until the end of March 2022
• The limit on single contactless payments has been more than doubled from £45 to £100
• Small and medium-sized employers can continue to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) per employee from the Government.
• A new Taxpayer Protection Taskforce has been allocated £100 million to crack-down on COVID fraudsters who may have exploited the UK Government’s support schemes.
• For Inheritance Tax purposes, the nil-rate band will continue at £325,000 and the residence nil-rate band will continue at £175,000 until 2026
• Capital Gains Tax annual exempt amount will remain at its present level of £12,300 until 2026