Budget 2021 Notes. Updated
1. Business and Jobs Support
Furlough Extending to 30 September 2021
Employees will receive the same pay as now
Employers will be expected to contribute as follows:
10% in July 2021
20% in August and September 2021
Self Employment Grants 4 and 5
If you filed a 2020 tax return by midnight 2 March 2021, you may now be eligible
this means 600,000 self-employed more will now be eligible
4th grant: for the period Feb to April 2021 – 80% of average trading profits, up to £7,500
5th grant: May to September 2021 – based on 3 months average profits, but:
if your turnover has fallen by more than 30%, you’ll get the 80% grant
if you turnover has fallen by less than 30%, you’ll get 30% of the grant
The fourth grant may be claimed from late April and the fifth by late July.
The grant is claimed through an online portal.
You must make the claim; it is not possible for us to make a claim on behalf of a client.
On opening the portal, you will be presented with HMRC’s calculation of the grant
Asked to confirm that you meet the conditions.
The grant will be paid within 6 working days of the application having been made.
Grants four and five will be taxable and NI-able in 2021–22.
Business Restart Grants
Hospitality, personal care, gyms will receive up to £18,000
Non-essential retail will receive up to £6,000
Film & TV Production – £300m in total through the Cultural Recovery Fund
These grants will be administered by your local authority. The on-line application portal is expected to be available from early April
Business Rates Holiday
This will be extended to 30 June 2021
2/3 discount from September 2021 to December 2021
Hospitality and Tourism VAT rates
The 5% reduced rate of VAT will continue to 30 September 2021
Then 12.5% from October 2021 to April 2022
Loss Carry Back Relief
Carry back losses to 3 years, to reclaim business taxes paid in those years
NOTE : Applies to both Limited Companies and self Employed persons
For the next 2 years, there’s a new 130% investment allowance, for investments in equipment etc
This means you can deduct 130% of the cost of the equipment from your profits, before working out the tax
NOTE : This Super Deduction ONLY applies to Limited Companies. Self Employed persons and landlords are excluded from the scheme
New Recovery Loan Scheme
Businesses of any size can apply for new loans from £25k to £10m
Apply up to 31 December 2021
Government will guarantee 80% of the loan
Asset and invoice finance between £1k and £10m
NOTE : The scheme will launch on 6 April 2021 and full details will be available in the next few weeks. Already major banks like Barclays, Lloyds and Virgin Money have signed up to the new scheme.
Eligibility You will be able to apply for a loan if
your business is trading in the UK and that your business is viable or would be viable were it not for the pandemic,
has been impacted by the coronavirus pandemic, and
is not in collective insolvency proceedings.
Business that have received support under the existing Covid-19 guaranteed loan schemes will still be eligible to access finance under this scheme, if they meet all other eligibility criteria.
ALSO The current Coronavirus Bounce Back Loans and Coronavirus Business Interruption Loans (CBILS) close for new applications at the end of March 2021
This has been increased to £3,000 for any age apprentice
Extended to 30 September 2021
Also £7 million for new “flexi-job” apprenticeship programme, so apprentices can work for more than one employer
Training and Growth
Help to Grow Management:
Management training offered for executive development, including mentoring and peer learning.
Government will pay 90%
You will be charged £750
Help to Grow Digital:
Help for small businesses to develop digital skills, with 50% discounts on hardware and software, up to £5,000 each
Register your interest here for both schemes (CTRL + Click)
Help for highly skilled migrants, to attract the best talent from overseas
Increase from £45 to £100
2. Personal Taxes and Spending
Stamp duty land tax threshold of £500k will continue to September 2021
Then £250k from July 2021 to September 2021
£125k from 1 October 2021
Mortgage guarantee scheme will guarantee mortgages up to £600k with a 5% deposit
Personal Tax Thresholds
Basic rate tax band increases from £12,500 to £12,570 in 2022 and will stay til 2026
Higher rate increases from £50k to £50,270 in 2022 and will stay til 2026
Inheritance tax and pension lifetime allowance stays the same for the next 2 years
£20 weekly increase will stay until September 2021
£500 one-off payment for eligible Working Tax Credit claimants
3. Funding The Spend
The Government will have put £407 billion into supporting businesses and jobs during the COVID crisis, so we need to recoup this somehow.
Here are some measures being put into place:
Corporation Tax Increase
For companies with profits over £50k a new 25% CT rate will be introduced in 2023
Profits under £50k will remain at 19%
Taper % for profits between £50k and £250k
As ever the devil is in the detail. Most of the details are being worked through by the Treasury and HMRC
NEW VAT Deferral Payment Scheme
Back in March 2020 the government announced you were able to defer your VAT payments due between 20th March 2020 and 30th June 2020. If you still have these payments to make then you can:
Pay the full deferred VAT payment, on or before 31 March 2021
Join the new VAT deferral payment scheme - the online service is open now until 21st June 2021
Contact HMRC on 0800 024 1222 by 30th June 2021 if you need extra help to pay
If you would like to take advantage of the new VAT deferral payment scheme then you need to act before 19th March 2021 to be able to spread the cost over 11 instalments. You will be required to do this yourself as set out in the guidance.
The new scheme allows you to:
Pay your deferred VAT in equal instalments, interest free
Choose the number of instalments, from 2 to 11 depending on when you join.
If you join by:
19th March 2021 - Number of instalments available to you is 11
21st April 2021 - Number of instalments available to you is 10
19th May 2021 - Number of instalments available to you is 9
21st June 2021 - Number of instalments available to you is 8
For more information on this scheme then please follow the link below
Following the link will allow you to log in to your Government Gateway and set up your plan
Financial Support for businesses during COVID-19
Please follow the link to see a full range of business support measures that have been made available to UK businesses.
The page will help you find out how to access the support, who is eligible and when the schemes open and how to apply.
Budget 2021: What you need to know 03/03/2021
An extra £1.65 billion cash injection to ensure the Covid-19 vaccination roll-out in England continues to be a success.
£28 million to increase the UK’s capacity for vaccine testing, support for clinical trials and improve the UK’s ability to rapidly acquire samples of new variants of COVID-19.
£22 million for a world-leading study to test the effectiveness of combinations of different Covid-19 vaccines. This will also fund the world’s first study assessing the effectiveness of a third dose of vaccine to improve the response against current and future variants of COVID-19.
A further £5 million on top of a previous £9 million investment in clinical-scale mRNA manufacturing, to create a ‘library’ of vaccines that will work against Covid-19 variants for possible rapid response deployment.
Extending £500 Test and Trace support payments in England until the summer.
2. Protecting jobs and livelihoods
An extension of the Coronavirus Job Support Scheme to September 2021 across the UK.
An extension of the UK-wide Self Employment Income Support scheme to September 2021, with 600,000 more people who filed a tax return in 2019-20 now able to claim for the first time.
An extension to the temporary cut in Stamp Duty Land Tax in England and Northern Ireland until September will support the housing market and protect and create jobs.
A new mortgage guarantee scheme will enable all UK homebuyers secure a mortgage up to £600,000 with a 5% deposit.
£5 billion for new Restart Grants – a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
Extension of the Film & TV Production Restart scheme in the UK, with an additional £300 million to support theatres, museums and other cultural organisations in England through the Culture Recovery Fund.
Six-month extension of the £20 per week Universal Credit uplift in Great Britain, with the Northern Ireland Executive receiving additional funding to match the increase. A one-off payment of £500 to eligible Working Tax Credit claimants across the UK.
Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.
Extension of the apprenticeship hiring incentive in England to September 2021 and an increase of payment to £3,000.
£7 million for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.
More than doubling the legal limit for single contactless payments, from £45 to £100
£10 million to support veterans with mental health needs across the UK.
£19 million to tackle domestic abuse in England and Wales, with funding for a network of ‘Respite Rooms’ to support homeless women and a programme to prevent reoffending.
£90 million funding to support our government-sponsored national museums in England due to the financial impact of Covid-19.
£300 million for major spectator sports, supporting clubs and governing bodies in England as fans begin to return to stadia.
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.
To further support the cashflow of businesses, the government is extending the loss carry back rules worth up to £760,000 per company.
£100 million for a new Taxpayer Protection Taskforce to crack-down on COVID fraudsters who have exploited UK Government support schemes.
3. Strengthening the public finances
Maintaining the income tax Personal Allowance and higher rate threshold from April 2022 until April 2026.
To balance the need to raise revenue with the objective of having an internationally competitive tax system, the rate of Corporation Tax will increase to 25%, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023. Businesses with profits of £50,000 or less, around 70% of actively trading companies, 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.
Maintaining inheritance tax thresholds at their current levels until April 2026.
Fuel duty will be frozen for the 11th consecutive year.
Alcohol duties will be frozen across the board for the second year running saving drinkers £1.7 billion.
Capping the amount of SME payable R&D tax credit that a business can receive in any one year at £20,000 (plus three times the company’s total PAYE and NICs liability).
Maintaining the Lifetime Allowance at its current level of £1,073,100 until April 2026.
The adult ISA annual subscription limit for 2021-22 will remain unchanged at £20,000.
4. An investment-led recovery
Beginning April 2021, the new super-deduction will cut companies’ tax bill by 25p for every pound they invest in new equipment. This is worth around £25 billion to UK companies over the two-year period the super-deduction will be in full effect.
Eight new English Freeports will be based in East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside.
The £375 million UK-wide ‘Future Fund: Breakthrough’ will invest in highly innovative companies such as those working in life sciences, quantum computing, or clean tech, that are aiming to raise at least £20 million of funding.
Reforms to the immigration system will help ambitious UK businesses attract the brightest and best international talent.
A new Help to Grow scheme to offer up to 130,000 companies across the UK a digital and management boost.
£2.8 million to support a UK and Ireland bid to host the 2030 World Cup and £25 million investment in UK grassroots sports, enough for around 700 new pitches.
Launching a review of Research & Development tax reliefs to make sure the UK remains a competitive location for cutting-edge research.
£20 million to fund a UK-wide competition to develop floating offshore wind demonstrators and help support the government’s aim to generate enough electricity from offshore wind to power every home by 2030.
£68 million to fund a UK-wide competition to deliver first-of-a-kind long-duration energy storage prototypes that will reduce the cost of net zero by storing excess low carbon energy over longer periods.
£4 million for a biomass feedstocks programme in the UK to identify ways to increase the production of green energy crops and forest products that can be used for energy.
Publication of the the government’s ‘Build Back Better: our plan for growth’.
Over £1 billion funding for a further 45 towns in England through the Towns Fund, supporting their long-term economic and social regeneration as well as their immediate recovery from the impacts of COVID-19.
£135 million to progress A66 Trans-Pennine upgrade.
£28 million to fund the Queen’s Platinum Jubilee celebrations in 2022, delivering a major celebration for the UK.
Plans for at least £15 billion of green gilt issuance in the coming financial year, to help finance critical projects to tackle climate change and other environmental challenges, fund important infrastructure investment, and create green jobs across the UK.
£150 million Community Ownership Fund will allow communities across the UK to invest to protect the assets that matter most to them such as pubs, theatres, shops, or local sports clubs.
£18.8 million to transform local cultural projects in Hartlepool, Carlisle, Wakefield and Yeovil.
Publication of the prospectus for the £4.8 billion UK-wide Levelling Up Fund, providing guidance for local areas on how to submit bids for the first round of funding starting in 21-22.
5. Scotland, Wales and Northern Ireland
Individuals and businesses in Scotland, Wales and Northern Ireland continue to be supported by the UK Government through the Coronavirus Job Retention Scheme, self-employment grants, loan schemes and VAT cuts. Devolved administrations have received Barnett funding to provide support in areas of devolved responsibility.
The Budget confirms an additional £2.4 billion for the devolved administrations for 2021-22 through the Barnett formula. This is an additional £1.2 billion for the Scottish Government, £740 million for the Welsh Government, £410 million for the Northern Ireland Executive.
The devolved administrations will also receive £1.4 billion of funding in 2021-22 outside the Barnett formula.
£27 million in the Aberdeen Energy Transition Zone and £5 million in the Global Underwater Hub in Scotland, the first stage in delivering the North Sea Transition Deal.
Three Growth Deals in Scotland – Ayrshire, Argyll & Bute, and Falkirk – will receive funding more quickly.
£4.8 million to support the development of a demonstration hydrogen hub in Holyhead, Anglesey.
Up to £30 million for the Global Centre for Rail Excellence in Wales.
Three City and Growth Deals – in North-Wales, Mid-Wales and Swansea Bay – will receive funding more quickly.
Northern Ireland will benefit from the Corporation Tax exemption for the Northern Ireland Housing Executive, Northern Ireland’s biggest landlord.
Almost half of the £400 million New Deal for Northern Ireland funding has been allocated, subject to business cases, to: new systems for supermarkets and small traders to manage new trading arrangements; building greater resilience in medicine supply chains; promoting Northern Ireland’s goods and services overseas; and supporting skills development.
£5 million to extend the Tackling Paramilitary Programme in 2021-22.
Announcement from Rishi Sunak 05/01/21
Businesses in retail, hospitality and leisure will receive a new grant worth up to £9,000 per property to help keep them afloat until spring. This will be made available via local authorities.
This is in addition to business rates relief and the extended furlough scheme.
Announcement from Boris Johnson 04/01/21
Currently there has been no further announcement of any support for businesses made to close through this new lockdown.
Businesses and venues which must close
non-essential retail, such as clothing and homeware stores, vehicle showrooms (other than for rental), betting shops, tailors, tobacco and vape shops, electronic goods and mobile phone shops, auction houses (except for auctions of livestock or agricultural equipment) and market stalls selling non-essential goods. These venues can continue to be able to operate click-and-collect (where goods are pre-ordered and collected off the premises) and delivery services.
hospitality venues such as cafes, restaurants, pubs, bars and social clubs; with the exception of providing food and non-alcoholic drinks for takeaway (until 11pm), click-and-collect and drive-through. All food and drink (including alcohol) can continue to be provided by delivery.
accommodation such as hotels, hostels, guest houses and campsites, except for specific circumstances, such as where these act as someone’s main residence, where the person cannot return home, for providing accommodation or support to the homeless, or where it is essential to stay there for work purposes
leisure and sports facilities such as leisure centres and gyms, swimming pools, sports courts,fitness and dance studios, riding arenas at riding centres, climbing walls, and golf courses.
entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, amusement arcades, bingo halls, bowling alleys, skating rinks, go-karting venues, indoor play and soft play centres and areas (including inflatable parks and trampolining centres), circuses, fairgrounds, funfairs, water parks and theme parks
animal attractions (such as zoos, safari parks, aquariums, and wildlife reserves)
indoor attractions at venues such as botanical gardens, heritage homes and landmarks must also close, though outdoor grounds of these premises can stay open for outdoor exercise.
personal care facilities such as hair, beauty, tanning and nail salons. Tattoo parlours, spas, massage parlours, body and skin piercing services must also close. These services should not be provided in other people’s homes
community centres and halls must close except for a limited number of exempt activities, as set out below. Libraries can also remain open to provide access to IT and digital services – for example for people who do not have it at home – and for click-and-collect services
For any financial support for businesses please follow this link and fill in the information
Claim for employee wages through Coronavirus Job Retention Scheme
Check if you can claim a grant through the Self-Employment Income Support Scheme
Financial Support if you're off work because of coronavirus
Self-Employed Coronavirus Update 10/11/2020
For our self- employed clients we now have the guidance of who may be eligible for a Self-Employment Income Support Scheme Grant. The grant will be availble from 30th November. It will be available in the form of 2 further grants, each grant covering a 3 month period. Firstly covering November 2020 to January 2021 and then February 2021 to April 2021.
Please follow the link for more information as to whether you may be eligible.
Coronavirus Update 31/10/2020
We will be updating the website with any help that is available to your business as the Government release more detailed information
From tonights announcement:
All bars, restaurants and pubs must close, but takeaways and delivery can continue to operate
Schools and Universities will be kept open throughout this period
Childcare provisions will stay open
Work places should stay open but if you can work from home then you should continue to work from home
None essential shops, leisure and entertainment venues will be closed
The furlough scheme, which was due to end today, will be extended until December. There will be some differences.
We should know by Monday 2nd November more information