Chancellor Rishi Sunak addressed the nation yesterday announcing his second Budget during the Coronavirus pandemic. With the roadmap now in place for how we will gradually move out of current restrictions we take a look at what the March 2021 Budget means for you and your business.
Some key points are highlighted below:
- Corporation tax to increase to 25% (currently 19%) from 2023 for businesses with profits over £250k. Businesses with profits of £50k or less will continue to pay tax at 19% with a taper system.
- Furlough scheme and the Self Employed Income Support scheme to be extended to 30 September 2021 (some changes to be announced).
- 5% VAT rate for hospitality, accommodation and attractions extended until 30 September 2021, followed by a 12.5% rate for a further 6 months until 31 March 2022.
- Capital allowances on new qualifying plant and machinery will receive a 130% deduction for two years from 1 April 2021.
- There will be a review of R&D tax credits.
- Stamp Duty Land Tax (SDLT) temporary cut will be extended until 30 September 2021.
- Range of ‘Restart’ grants for businesses reopening after lockdown.
- Recovery Loan Scheme from 6 April 2021: government to guarantee 80% of eligible loans from £25,000 to £10 million to give lenders confidence to support UK businesses, with some other loan schemes coming to an end on 31 March 2021.
To read our full budget summary please click the link below.
Tree Accountancy Limited Budget 2021