These are the headlines that the Chancellor, Rishi Sunak, announced today in parliament. As ever the devil is in the detail we will be issuing a more comprehensive newsletter with these details in it.
Jobs Retention Scheme – Furlough
- Will continue until 30 September 2021.
- Up to June as it is now i.e. 80% of salary covered by Govt with a max salary of £3,125 = £2,500.
- Flexible working allowed so above proportioned by amount of work performed.
- From July the amount becomes 70%.
- For August and September the max becomes 60%.
Self Employed Income Support Scheme (SEISS)
- For the 4th tranche i.e. between Feb and Apr rules are the same of up to 80% of profits covered by govt.
- There is 5th tranche for May to September which is determined by the effect on your profit by COVID – more details to come.
- Access has been improved so people who qualify under the 2020 tax return can claim.
Universal Credit and Working Tax Credit
The additional support is being continued e.g. £20 pw for UC and a one off £500 for WTC.
National Living Wage
Increases to £8.91 ph.
Help Prevention of Domestic Violence
An additional £19m provided for support due to increase in domestic violence during pandemic.
Business Rates Related Grants
- Non-essential retail will get grants of up to £6k.
- Hospitality and Leisure will get grants of up to £18k.
Business Rates Holidays
- 100% holiday for Retail/Hospitality/Leisure businesses continues to 30th June 2021.
- 67% holiday from July to March 2022.
VAT reduction
- Hospitality sector reduced 5% VAT rate extended until 30th September 2021.
- Then 12.5% from October through to March 2022.
Grants for Arts/Culture and Sport
Further £700m grant set aside.
Recovery Loan Scheme
- Replaces Bounce Back and CBILS schemes
- Between £25k and £10m
- 80% guaranteed by Government
- Applications up until end of 2021
Stamp Duty
- Current Nil rate band up to £500,000 on house purchases will continue until 30th June 2021.
- Nil rate band will then be up to £250,000 until 30th September 2021.
- Only then will it revert to the previous £125,000.
Personal Taxes
- Income Tax free allowance will increase to £12,570 as previously announced from 5th April 2021.
- Income Tax free allowance will remain frozen after that to 5th April 2026.
- Basic Rate band will increase to £50,270 as previously announced from 5th April 2021.
- Basic Rate band will remain frozen after that to 5th April 2026.
- IHT, CGT and thresholds will remain as they are.
- VAT registration threshold will remain at £85,000.
Corporation Taxes
- From 2023 the Rate of Corporation Tax will increase to 25% from 19%.
- There will be tapering of rates for small companies who have profits of £250k or less.
- Losses can be taken back 3yrs as opposed to 1yr currently.
Capital Allowances
New super rate of 130% of capital expenditure allowable against profits.
Alcohol and Fuel Duty
Remain unchanged.
Taken from the Chancellor’s speech – E&OE.