Rishi Sunak Budget 3rd March 2021
Grab your favourite beverage of choice, here’s a snapshot covering 20 points from Chancellor Rishi Sunak’s Budget.
One stand out comment is, “Nobody’s take home pay will be less than it is now as a result of this policy.” While recognised as being bold in some areas, does it go far enough?
- Current furlough scheme extended to end September 2021, from July the Govt will introduce an employer contribution.
- Self-employed income scheme extended, more than 600k people who became self-employed in 2021 can claim the 4th Grant (Feb – April) and 5th Grant (from May).
- Apprentice payments double to £3k for all new hires, and new-flexi apprenticeships will allow people to work for different employers in the same sector.
- New Restart Grant starts in April to help businesses – retail (1st), and hospitality and leisure (2nd).
- New Recovery Loan Scheme from £35k to £10m are to replace Bounce Back and Business Interruption loans and will be available to businesses of any size.
- The current 100% business rates holiday is extended until end of June 2021.
- The current 5% reduced VAT rate is extended for 6 months for hard-hit hospitality and tourism sectors. Tapering increase 1st October (12.5% rate), with a return to the 20% rate April 2022.
- Current stamp duty nil rate band threshold of £500k is extended to end June, tapered decrease to £250k, then returning to previous level of £150k from October 2021. The Govt is to offer lenders guarantees for 95% mortgages.
- Freeze on personal tax threshold with no increase in income tax, NI or VAT.
- A new Taxpayer Protection Taskforce will be created to tackle Covid fraudsters.
- In 2023 corporation tax paid on company profits increases to 25%.
- Businesses with profits of £50k or less will be subject to a Small Profits Rate at 10%.
- Innovation being encouraged for green initiatives, including a boost to regional areas with ‘green economy’ plans.
- There will be a super deduction for businesses investing in new equipment.
- No increase in alcohol or fuel duties.
- Digital adoption will be supported through a Super Deduction for businesses investing in new equipment.
- Up-skilling is supported through MBA style training. Register now for Help to Grow here:
- Visa changes will attract highly skilled workers in science, technology and more areas.
- Future Fund: Breakthrough, is coming into force to fill the scale-up funding gap.
- The first 8 freeports will be introduced to boost trade and jobs (including Liverpool).