Thanks to the now-standard rush of leaks, pre-briefings and big hints, we had a enough good idea of what was going to be add in the government’s spring 2021 Budget. There was only one big surprise : contrary to some gossips, Rishi Sunak seems to have left Capital Gains Tax almost untouched (for now, at least); he focusing on his revenue-raising firepower almost exclusively on corporation Tax.
So that now we’ve had time to digest the small print at the back of the headlines, here’s a closer look at what’s changed, and what is it means for your business.
Budget 2021 Covid-19 reliefs
Furlough rules for employees
. As awaited the corona virus job Retention Scheme(CJRS) once again has been extended. In the CJRS version 3,and now will run until 30 September 2021.
. Employees will continue to be permit to up to 80% of their present salary for hours not worked, up to a monthly cap of £2,500.
. Still thethere an option for employees to be either fully or part-time furloughed, making it possible for employees to work part-time while receiving furlough pay for hours been u worked.
IMPORTANT KEY POINTS TO BE NOTED
° unlike of the sceme with the second version, workers do not have to be furlough before to be eligible for CJRS version 3.
° employee numbers cap’s also has been lifted. There is no specific limit on the number of eligible employees one who can be fuloughed under version 3.
The Self-employment Income Support Scheme (SEISS) wil continue further September with a fourth and fifth grant.
Happy news if you moved to contracting or self-employed position just before the pendamic : whichmeans that some individuals will be able to claim for the first time, even if they weren’t eligible for the first quota of support.
BUSINESS RATES HOLIDAY AND HOSPITALITY VAT
At the time of announcement, the existing business rates holiday (was which due to finish at the end of March), will be expanded until the end of June. After that, rates will be discounted to one-third of the normal charge for the resident of the financial year.
STAMP DUTY HOLIDAY
Heavily trailed in the run-up to the budget, the stamp duty holiday has been extended. In Between 1 July and 30 September Budget 2021, a stamp duty threshold of £250,000 will apply.
The given government’s self-imposed triple tax lock , it come as little shocking that actual income tax rates have not been increased. Instead, the Chancellor went down the route of adjust with the rate threshold.
Corporation Tax: The big announcement of new small profits rate was the 6% increase in corporation Tax to 25% this applies from 1 April 2023
To enlarge more scope for businesses to utilises tax losses they may have experienced as a result of the pendamic, the carry-back period has been temporarily extended.
A large deduction of 130% of capital expenditure aimed at companies that invest in innovative. Between 1 April 2021 and 31 March 2023, companies investing new plant in qualifying and machinery can use make of new first – year capital allowances.