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:
- Continue doing whatever it takes to protect jobs and households
- Begin fixing public finances
- Building our future economy
Spring Budget 2021 – Hear key views to help individuals and businesses take the right next step
WATCH: Budget 2021 – The Big Picture
WATCH: Budget 2021 – Tax Changes
WATCH: Budget 2021 – Support to SMEs
WATCH: Budget 2021 – Spotlight on VAT & Hospitality
WATCH: Budget 2021 – Spotlight on Construction & Real Estate
WATCH: Budget 2021 – Spotlight on Investment and Skills
WATCH: Budget 2021 – Spotlight on Furlough Scheme
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:
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