Rishi Sunak has announced the much anticipated 2021 recovery budget, laying out plans for how the UK will bounce back from Covid19 and protect jobs & income for the year ahead.
Here are some of the key points for small businesses & the self-employed:
Furlough Scheme To a sigh of relief, the furlough scheme which has been a life-line to employers and employees alike has been extended until September 2021. Employers will be asked to contribute 10% of hours staff do not work in July & 20% in August and September.
Self-employed Income Support Scheme The current support scheme is being widened to include 600,000 people that filed a return in 19/20 tax year for the first time. The scheme also includes a 4th and 5th grant, taking the scheme up until July 2021.
VAT
Reduced VAT (Value Added Tax) of 5% for businesses within the hospitality, accommodation & attractions industry will remain for 6 months, until 30th September 2021. This will increase to 12.5% from October 2021 until the new year and from April 2022, will return to 20%.
Help to Grow
This new scheme has been introduced to offer leaders of SMEs across the UK, management training, free expert technical advice and 50% discount on digital, productivity-enhancing software up to £5,000. You can register your interest via www.helptogrow.campaign.gov.uk
Corporation Tax Corporation Tax will be raised by 25% from April 2023. The increase only applies to companies with a profit of over £250,000. Also, the introduction of a small profit rate of 19% for companies with a profit of £50,000 or less, with a tapered approach between the two thresholds.
For more information on how the new budget will impact you or your business, contact done of our experts.
