Updated UK Tax Budget 2021

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Written by: Liez Comendador

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Listed below are the latest updates on the UK Tax Budget 2021: 

PERSONAL

 

  • 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

  • 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


  • 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

 

  • Business rates holiday extended until June 2021. 

GRANTS

 

  • 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.

DUTIES

 

  • Alcohol duty frozen.

  • Fuel Duty frozen.

HOUSING

 

  • 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.

FREEPORTS

 

  • 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. 

Author

  • Junaid Usman

    Apart from being a partner at Legend Financial, Junaid is an expert on Business Tax including business management advisory services which has proven in the growth of company. He is a promising advisor with an ideology; "Any business success depends on the level of objectivity it maintains."

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Reviewed by:

Picture of Junaid Usman
Junaid Usman
Apart from being a partner at Legend Financial, Junaid is an expert on Business Tax including business management advisory services which has proven in the growth of company. He is a promising advisor with an ideology; "Any business success depends on the level of objectivity it maintains."

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