Measures announced by Chancellor Rishi Sunak in the Budget yesterday
1. Protecting jobs and livelihoods
An extension of the Furlough Scheme to September 2021 across the UK.
From April 2021 to Sep 2021, employees will continue to receive 80% of their current salary for hours not worked, and employers need to contribute National Insurance contributions (NICs) and pensions as usual. From July 2021, the government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.
An extension of the UK-wide Self Employment Income Support scheme to September 2021.
To support the self-employed across the UK through the next stage of the pandemic, the government confirms that the fourth SEISS grant will be worth 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500 in total. The grant will cover the period February to April, and can be claimed from late April. Self-employed individuals must have filed a 2019-20 Self-Assessment tax return to be eligible for the fourth grant. This means that over 600,000 individuals may be newly eligible for SEISS, including many new to self-employment in 2019-20. All other eligibility criteria will remain the same as the third grant. Further details will be published in due course.
An extension to the temporary cut in Stamp Duty Land Tax in England and Northern Ireland until September will support the housing market and protect and create jobs.
£5 billion for new Restart Grants – a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
The government will continue to provide eligible retail, hospitality and leisure properties in England with 100% business rates relief from 1 April 2021 to 30 June 2021. This will be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022.
Small and medium-sized employers in the UK will continue to be able to claim back two weeks of Statutory Sick Pay due to coronavirus costs per employee from the Government.
£100 million for a new Taxpayer Protection Taskforce to crack-down on COVID fraudsters who have exploited UK Government support schemes.
2. Strengthening the public finances
Maintaining the income tax Personal Allowance and higher rate threshold from April 2022 until April 2026.
The income tax Personal Allowance will rise as planned to £12,570.
The national minimum wage will increase to £8.91 from April 2021
To balance the need to raise revenue with the objective of having an internationally competitive tax system, the rate of Corporation Tax will increase to 25%, which will remain the lowest rate in the G7. In order to support the recovery, the increase will not take effect until 2023.
Businesses with profits of £50,000 or less, will continue to be taxed at 19% and a taper above £50,000 will be introduced so that only businesses with profits greater than £250,000 will be taxed at the full 25% rate.
The adult ISA annual subscription limit for 2021-22 will remain unchanged at £20,000.
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