5th Mar
Graham Reid
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March 2021- Budget Update

The summary details from the 2021 Budget are included in the link below and are worth reading through if you are not familiar with what the Chancellor announced yesterday.

https://www.simplybusiness.co.uk/knowledge/articles/2021/03/uk-budget-2021-for-contractors-and-the-self-employed/?utm_source=email&utm_medium=spring_budget_2021&utm_campaign=march_cust_profs

The main highlights are:-

Good News

  • Extensions to the furlough scheme and self employment income support scheme to September 2021.
  • Self Employment grants to included people previously excluded because they had recently set up their business and had insufficient income through their 2018-2019 tax return or registered after March 2019. The grant will however not be available until mid April.
  • VAT reductions to stay in place for hospitality businesses again until September 2021.
  • Universal credit extra £20 per week extended until September 2021.
  • A new more generous loan scheme will come on line from April which can be accessed by businesses even if you have already taken out a Bounce back Loan or CBIL.
  • New grants for businesses forced to close during the recent lockdown are being made available in England and Northern Ireland and a similar scheme will likely be launched in Scotland in the coming days.

Not So Good News

  • Tax free personal allowance rates which normally rise annually in line with RPI will be frozen after next April for the following 4 years. This effectively means a tax rise for everyone from 2023.
  • Corporation tax rates for limited companies will rise to a rate of 25% from 19% for the largest businesses. Smaller businesses may be exempt from any increases depending on level of profits.

As always, please give me a call if you need further details on how any of these announcements may affect you personally.

Also just a reminder that your annual accounts and tax return filing for tax year April 2020 – March 2021 can take place from the beginning of April 2021. Please help the practice by getting your books in as early as possible particularly those new businesses who are filing their first set of accounts.

Thanks

Graham Reid
www.grahamreid.co.uk

Categories: Budget

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