Listed below are the latest updates on the UK Tax Budget 2021:
- The Forlough scheme/CJRS will be extended until the end of September. After July, businesses will be asked for a 10% contribution, rising to 20% in August and September 2021.
- SEIS Scheme will continue until September 2021.
- Universal Credit uplift extended until September 2021.
- The National Living Wage will rise to £8.91 from April.
- Corporation Tax will increase from 19% to 25% from April 2023 with below banding on profits:
Up to £50,000 – 19% (Awaiting conformation)
£50,001 – £100,000 – 20%
£100,001 – £150,000 – 21%
£150,001 – £200,000 – 22%
£200,001 – £250,000 – 23%
£250,001 upwards – 25%
- 130% super deduction – Companies can claim tax relief on Investment on innovations.
- VAT registration threshold will remain £85,000 until 2024.
- Temporary reduction of VAT rate for Hospitality and Tourism extended until September 2021 and then of 20% will until next year.
- Business rates holiday extended until June 2021.
- Non-essential retail businesses will receive grants of up to £6,000 per premises.
- Hospitality and leisure businesses will get grants of up to £18,000.
- Alcohol duty frozen.
- Fuel Duty frozen.
- Stamp Duty Holiday extended until end of June 2021 with the nil rate band of £500,000. Nil rate will be decreased to £250,000 from 1st July to 30th September 2021. Nil band of £125,000 will return from 1st October 2021.
- Mortgage Guarantee for people borrowing 95% LTV.
- Goods that arrive into freeports from abroad aren’t subject to tariffs. Eight Freeport’s in East Midlands Airport, Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames, and Teesside.