• Furlough to be extended to September and self-employed income support scheme extended to September with a 4th grant covering February to April & a 5th final grant covering May to September. The 4th & 5th self-employed grant are also available to newly self-employed individuals, providing their self-assessment tax return was submitted by 2nd March 2021.
  • Tax free personal annual allowance upped from £12,500 to £12,570 and will remain at that level until 2025-2026.
  • Reduced VAT rate for hospitality, accommodation and attractions of 5% is extended to 30th September 2021 then 12.5% to 31st March 2022.
  • A new Restart Grant will begin in April to help businesses reopen. Non-essential businesses will get grants of up to £6k per premises. Hospitality, personal care and similar sectors that won’t be able to open until later on will get grants of up to £18,000.
  • ‘Super deductions’ capital allowances for limited companies. Companies which purchase plant & machinery for business use can claim 130% of the value to offset against profits. For example, a laser engraving machine bought for £5,000 would result in a claim of £6,500 against profits.
  • From April 2023 the rate of Corporation Tax will increase from between 19% to 25%. Companies with profits under £50,000 will remain at 19%. Companies with profits between £50,001 and £250,000 will pay a tapered rate. Only those with profits over £250,000 will pay the full 25% rate.

For the full release please see Budget 2021 – GOV.UK (www.gov.uk)