What did the Chancellor announce today?
Below is a brief summary of some of the points announced this lunchtime. Of course, more detail and additional information will become available overnight and our tax experts are busy working on this now to work out how this will impact upon our clients. Often with the Chancellor’s Budget much of the devil is in the detail.
We will have a full budget report available tomorrow morning which can be downloaded in PDF format from our publications page and we have a few virtual places still available at our Budget webinar on Friday morning. If you wish to join us please visit our webinars page.
The furlough scheme continues until September with no change of terms.
After July businesses will be asked for a 10% contribution which will rise to 20% in August and September.
Self Employed Support
Support for the self-employed was also extended with a 4th and 5th Grant for the self employed announced.
Any newly self-employed person that as of midnight last night had submitted a tax return would be able to claim the 4th and 5th Grants.
The chancellor announced that the current up-to-£500,000 “nil-rate band” for stamp duty will be extended until the end of June. This will then be tapered out.
At the same time a new Government backed 95% mortgage was also announced and details will follow. Further information to follow.
Corporation tax will be increasing up to 25%. This is still one of the lowest rates in the G7. However, for smaller businesses there will be a smaller business rate for those with profits under £50k the rate will remain at 19%. Further information to follow.
The threshold for paying the basic rate will rise to £12,570 next year and for high rate taxpayers this will increase to £50,270. Both rates will then be frozen and stay the same until 2026.
The Government is keen to invest £25bn in the UK’s growth and set out a 130% super-deduction where companies can reduce their tax by up to 25p in every pound they invest. A 130% allowance for machinery will take the UK from the 30th to the 1st in OECD business investment stakes. Further information to follow.
A new Recovery Loan scheme was announced that will provide loans of between £25k to £10m, which will be guaranteed by the UK Government at up to 80%.
The universal credit uplift of £20 a week will continue until September.
The National Living Wage will rise to £8.91 from April.
A new restart Grant will be available in April which is designed to help businesses reopen.
Non-essential retail businesses will be eligible to receive grants of up to £6,000 per premises.
Leisure and hospitality businesses will be eligible for grants of up to £18,000.
Help to Grow digital
The Chancellor announced that the UK is to provide SME’s with access to free online advice on tech to help businesses save time reduce costs and reach more customers. Any eligible SMEs will be given vouchers to get up to 50 per cent off the purchase of new productivity-enhancing software. Further information to follow.
Fuel and alcohol
Rates were frozen on fuel and alcohol and apart from the VAT rates for the hospitality and leisure industry no changes were announced to VAT.
The above has been produced at speed and much of the detail is yet to be checked and confirmed. Please do not act upon, or refrain from acting, on the basis of anything contained in this blog post which is likely to be replaced as more details become available overnight.
If you wish to speak to a member of our team to discuss how the Budget may have impacted upon your affairs please contact us on 020 7330 0000.