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March 2021 Budget

So the budget was announced yesterday and it was full of useful information that we are sure you want to know more about, more specifically the extra support announced for businesses as you are allowed to start to re-open. Below we have summarised all of the information for you, and over the next couple of weeks, we will release more detailed information including videos on our YouTube channel about the support now available to businesses.

Let's start off with what was announced in Coronavirus support as I am sure this is what you want to know about.

Coronavirus Job Support Scheme (CJRS)

The CJRS has been extended until the end of September 2021 which is now 18 months after it started. The key points in this are:

  • The government will continue to pay 80% to employers up until the end of June

  • Employers will have to contribute 10% in July, meaning you will receive 70% from the government

  • Employers will have to contribute 20% in August and September, meaning you will receive 60% from the government

  • Employees will still receive 80% of their wages

Self-employed Income Support Scheme (SEISS)

Just like the CJRS, the SEISS has also been extended until the end of September. The key points for this are:

  • Around 600,000 more self-employed people will now be eligible for help as access to the grant has widened

  • The fourth grant available for February to April paid at 80% (Available from late April). Find out more here

  • A fifth grant will be available covering May to September worth either

    • 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more

    • 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%

    • The reduction is determined by how much your turnover has been reduced in the April 2020 to April 2021 tax year

Lastly, we have the following takeaways from the budget for coronavirus support:

  • The business rates holiday will continue until the end of June with a discount of 75% thereafter until April 2022

  • The lower rate of VAT will be maintained at 5% until September 2021 with an interim rate of 12.5% for the following 6 months

  • There will be £5bn in restart grants available for shops and other businesses forced to close

    • Up to £6000 per premises for non-essential outlets due to open in April and £18,00 for gyms, personal care providers and other hospitality and leisure businesses

  • £20 uplift in Universal Credit worth £1,000 a year to be extended for another 6 months

What else was announced in the budget that may affect you?

  • The minimum wage will increase to £8.91 an hour from April

  • There will be no change to the rates of income tax, national insurance or VAT

  • The tax-free personal allowance will be frozen at £12,570 from April 2021 until April 2026

  • The higher rate income tax threshold to be frozen at £50,270 from April 2021 until April 2026

  • Corporation tax on company profits above £250,000 to rise from 19% to 25% in April 2023

    • Rate to be kept at 19% for smaller companies with profits of less than £50,000

    • The rate will be scaled for companies with profits between £50,001 and £249,999

  • Inheritance tax thresholds, pension lifetime allowances and capital gains tax exemptions to be frozen at 2020-2021 levels until 2025-2026

  • Stamp duty holiday extended until 30 June 2021

  • Businesses will be able to "deduct" investment costs from tax bills, reducing taxable profits by 130%

    • For example, if you invest £1,000 into computer equipment, you can receive a profit reduction of £1,300 (130%) giving you a corporation tax saving (based on 19%) of £247

    • These are known as capital allowances

  • Employers to be paid £3,000 incentive payment to take on new apprentices

  • Contactless payment limit to rise to £100

  • All alcohol duties to be frozen for another year

  • All fuel duties to be frozen for another year

We know that is a lot of information to take in, but please keep an eye on your inbox, our social channels and our YouTube channel for even more updates and explanations.

We also would like to remind you that all grants received from the government are taxable and need to be declared on your tax return.

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