Budget 2021

March 3rd, 2021

A summary of the announcements made by the Chancellor of the Exchequer Rishi Sunak in the 2021 Budget on Wednesday 3rd March 2021.

Corporation tax

Small companies with profits of £50,000 and below will receive a small business corporation tax rate of 19% this will be called small profits rate.

Personal tax and national insurance and VAT

Rates of income tax, national insurance, or VAT will not raise. Freezing personal tax thresholds. Nobody’s take-home pay will be less than it is now, as a result of this.

Tax-Free Allowance to be frozen (until 2026) at £12,570, the Higher rate at £50.27

Self-employed 

4th Grant @ 80% average trading profits (February - April) available in April
5th Grant open from July will target support towards most affected by the pandemic

More detailed information on the fourth and fifth grants is available here

Furlough

VAT

Hospitality and tourism reduced rate of 5% VAT extended until 30th September when it will rise to 12.5% until April 2022.

Business rates

100% business rates holiday through to the end of June. For the remaining nine months of the year, business rates will still be discounted by two thirds (66.6% reduction) until April 2022, up to a value of £2m for closed businesses.

New loan recovery scheme

Businesses of any size can apply for loans from £25,000 up to £10m, through to the end of this year. The government will guarantee lenders with 80%.

Culture recovery fund

Culture Recovery Fund and supporting our arts, culture and sporting institutions as they reopen.

Restart grants 

Restart grants of £6,000 for the first businesses to reopen. Hospitality and leisure businesses including personal care and gyms, will open later, or be under more restrictions, so we'll pay them grants of up to £18,000.

Restart grants 

Restart grants of £6,000 for the first businesses to reopen. Hospitality and leisure businesses including personal care and gyms, will open later, or be under more restrictions, so we'll pay them grants of up to £18,000.

A new taxpayer protection taskforce

A new £100m team to crack-down on COVID fraudsters who have exploited government support schemes. There will be 1,250 HMRC investigators who have sought to fraudulently claim taxpayer's money.

Other points

You can read the official budget document here - https://www.gov.uk/government/topical-events/budget-2021