Budget 2021

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The Chancellor of the Exchequer, Rishi Sunak, has announced the Government’s latest UK Budget.

This Spring Budget set out the next set of financial measures for individuals and businesses as the UK transitions through the next phase of this pandemic and on towards the road of recovery.

This Budget involves a three part plan:

  1. Continue doing whatever it takes to protect jobs and households
  2. Begin fixing public finances
  3. Building our future economy

Spring Budget 2021 – Hear key views to help individuals and businesses take the right next step

Budget 2021: Quick summary

  • Furlough to be extended until the end of September. With the Government to continue paying 80% of employees’ wages for hours they cannot work.
  • No changes to rates of income tax, national insurance or VAT
  • Personal income tax allowance to be frozen at £12,570 from 2022 to 2026
  • Higher rate income tax threshold to be frozen at £50,270 from 2022 to 2026
  • Corporation tax on company profits to rise from 19% to 25% in April 2023
  • A “super deduction” in tax for companies for the next 2 years that invest in plant and machinery.
  • A new COVID recovery loan scheme launched offering 80% guarantees by the government. To replace the Bounce-back and other coronavirus loans for businesses
  • £400m to help arts venues in England, including museums and galleries, re-open
  • £300m recovery package for professional sport and £25m for grassroots football
  • Incentive grants for apprenticeships to rise to £3,000 and £126 for traineeships
  • Reduced rate of 5% VAT for the hospitality and tourism sectors has been extended to the end of September
  • Business rates holiday for firms in England will continue from April until June
  • £5bn in re-opening grants for non-essential businesses of up to £6,000 per premises.
  • Eight new freeports with special economic zones and different custom rules

To help you navigate these unsure times our experts across MHA will be delivering a collection of special insights, webinars and commentary that will cover the key points from the economic update.

Download our FREE Budget 2021 Summary Guide and Tax Card by clicking below:

You can also catch our latest Budget updates as they are published by following us on LinkedIn and Twitter.

Pre-Budget Commentary

Budget 2021: Predictions & Wishlist

In this exclusive article, our experts give their views on what could be expected from the Spring Budget, and the potential impact on rebuilding the economy in a post-Covid and post-Brexit environment.

Read more here

Budget 2021: Raising Corporation Tax is a self-defeating strategy

As a Corporation Tax rate (currently 19%) rise remains a possibility for this year’s budget (3 March), Our Head of Corporate and International Tax, Chris Denning believes the government needs to stimulate enterprise and investment and, like it or not, the Corporation Tax rate is seen as a bellweather for the attractiveness of the UK economy.

Read more here

Budget 2021: COVID-hit travel sector’s expectations

Travel and Tourism Partner, Rajeev Shaunak outlines that urgent measures are needed to save the travel industry from the enormous impact of the Covid-19 pandemic. The lack of liquidity is the biggest single danger to the industry right now and helping travel businesses manage their cash flow needs to be a priority.

Read more here

Budget 2021: Extending the Furlough Scheme

Ahead of the budget on 3 March, Nigel Morris, Employment Tax director at MHA MacIntyre Hudson, says extending the furlough scheme is the right call but with no sector distinctions and ought to go hand in hand with a return of the Job Retention Bonus Scheme.

Read more here

Budget 2021: Robust financial support measures are needed to help UK SMEs and entrepreneurs recover

Robust financial support measures and not just ‘sticking plasters’ are needed to help UK SMEs and entrepreneurs recover and grow well beyond the pandemic.

Read more here

Find out more

If you would like further guidance or to discuss in more detail how this Budget may impact your business, please contact one of our specialists at your local MHA member firm