SPRING BUDGET 2021
Following on from the spring budget that was held last week we would like to inform you of some of the points discussed during the briefing and also what we will be including in Volume 2 of our newsletter.
Pre Budget Announcements:
• Contactless card limit to raise to £100 later in the year
• £126m into traineeship scheme, government will pay firms £3k per trainee
Budget Points we will expand on in the upcoming newsletter:
- Furlough will be staying at 80% – from July 10% from employers, from August 20%
- Support for the self-employed will continue until September
- Newly self-employed people (if tax return filed by 28/02/21) can now claim SEISS grants going forward
- A restart grant for businesses will be available from April 2021
- The recovery loan scheme will end in December – backed 80% by government
- Rates of income tax, national insurance or VAT will not rise
- Personal allowance of £12,570 and higher rate tax band of £50,270 will be frozen to April 2026
- Inheritance tax threshold, CGT allowance, VAT registration threshold will be frozen for the next 2 years
- New HMRC tax force to be put in place to prevent fraud
- From April 2023 corporation tax will rise to 25%
- Over the next 2 years, when companies invest, they will get a “super deduction” to reduce profits by 130% of costs
- “Freeports” to be introduced in certain regions of the UK
Other points mentioned during the Budget:
- Minimum wage will rise to £8.91 from April 2021
- There will be a £3,000 grant for new apprentice hires
- 100% business rates holiday will end in June – 2/3 discounts for the rest of the year
- 5% VAT on hospitality will be extended until end September 2021, then 12.5% until April 2022
- £500k nil rate band for stamp duty will end in June 2021, £250k nil rate band to end in September 2021
- Tax treatment on losses (max £220K) can be carried back 3 years
- Investment in green industries and infrastructure will be £12b starting in spring
- Help to grow scheme
- More money into R & D and Enterprise Investments
- £150m for local communities to take over pubs, clubs, shops etc
- Universal credit uplift of £20 per week will continue for another 6 months
- £19m will go into reducing domestic violence programmes
- £10m will go to support armed forces veterans and mental health needs
- £700m will go to arts, culture and sports
- Mortgage guarantee – government to back mortgages that only require a 5% deposit
- Alcohol duty will be frozen
- Petrol duty will be frozen
- UK savers can invest in green products
- £1.6b into vaccination programs
- More flexibility for pension industries to invest
- UK Infrastructure bank to be set up in Leeds and given £12b worth of capital
Other points that we shall discuss in the forthcoming newsletter:
- Taxation on COVID grants
- Personal liability notices
- Child benefit income reducing
- Repairs vs Enhancements
- Plug in grants
- Working at home allowance
- Mini umbrella companies
- HMRC scam calls
- RTI Penalties