Budget 2021

Budget

Today, Rishi Sunak presented the Budget – Here’ is a breakdown of the key financial points you need to be aware of:

Furlough scheme

  • Will continue until 30th September 2021
  • The government will pay 80% of an employee’s earnings until 30th June 2020
  • In July the government will pay 70% of an employee’s earnings and the employer is to pay the remaining 10%
  • In August and September the government will pay 60% of an employee’s earnings and the employer is to pay the remaining 20%
  • It will remain the responsibility of the employer to pay National Insurance and pension contributions

Self-employed grants (not for Company Directors)

  • 2 further grants announced to cover Feb-Apr and then May-Sep
  • This is now open to newly self employed individuals (ie if your first tax return was for 2019/20)

National Living Wage

  • This will increase to £8.91 per hour from April 2021 – For those aged 23 and over

Hospitality Industry Budget

Grants for the Hospitality sector

  • Will restart in April 2021
  • The amount awarded will be up to £18,000 per premises
  • As normal, these funds will be made available by your Local Council
  • Details regarding the level of awards / how much your business will receive are yet to be released – We anticipate your Council will be in touch as soon as they have the relevant detail from the government

Business Rates

  • Business rates will remain at nil until 30th June 2021
  • Business rates will then be 1/3 of the normal rate from July 2021 to Mar 2022.  However, there will be a lower discount for businesses that are open.  
  • The finer details of these discounts are yet to be announced.  We anticipate your Council will be in touch as soon as they have the relevant details from the government

VAT

  • VAT on food and non-alcoholic beverages will remain at 5% until 30th September 2021
  • VAT on food and non-alcoholic beverages will be 12% from 1st October 2021 – 31st March 2022 

Corporation Tax

  • Corporation will be increased from April 2023
  • Businesses with profits of £50,000 or less, around 70% , will continue to be taxed at 19% and a taper above £50,000 will be introduced so that only businesses with profits greater than £250,000 will be taxed at the full 25% rate

Personal tax thresholds

  • Personal tax thresholds will be frozen at £12,570 (standard level) until April 2026 (this is the amount of earnings you can get before you have to start paying PAYE)
  • Personal tax thresholds will be frozen at £50,270 (higher level) until April 2026  

Duties

  • Alcohol and fuel duties will NOT be increased as yet