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BUDGET 2021

BUDGET NEWS 2021

 

 

1

The Income Tax Personal Allowance of £ 12,570.00 will be frozen for 4 years for April 2022.

2

Interest allowance remains at £ 1,000.00.

3

Dividend Allowance remains at £ 2,000.00.

4

National Levy Wage increases to £ 8.91 from April 2021.

5

The Furlough Scheme is to be extended to the end of September, but employers will contribute more of the cost in July (10%), August and      September (20%)

6

Support for the Self Employed will be extended to 30th September 2021. Until April support will be 80% of 2018/2019 figures, and from May to September it will be cut to 30% for those whose turnover has fallen by less than 30%. In addition, those who have claimed support, but whose was Not reduced by 30% will be getting letters from HMRC clawing back the entire support.

7

Business rate Holiday to June for Retail and Hospitality firms; with a 75 % discount to September 2021

8

Kickstart Scheme to be expanded as only 2000 have taken up the opportunity.

9

Apprentice scheme to be extended to encourage people back to work, with Government funding doubled to £ 3,000.00 per apprentice.

10

Inheritance Tax threshold unmoved.

11

Capital Gains Tax threshold unmoved.

12

Corporation Tax   to rise from 19% to 25% in 2023, except for smaller companies with turnover under £50,000.00.

13

Universal Credit top up of £ 20.00 per week extended for 6 months.

14

The Stamp Duty Holiday on properties under £ 500,000 is extended to 30th June 2021.

15

The Government has agreed for 8 new Freeport’s.  They will benefit from tariff-free trade and a suite of Tax relief to lure investments after     Brexit.

16

Pension Lifetime Allowances are frozen.

17

VAT for hospitality and tourism to remain at 5% to 30th September 2021.

18

The Government is setting up a £ 5 billion restart grant scheme for shops forced to close.

19

Fuel Duty, Cigarettes Tax, and Alcohol Tax are all frozen for now.

20

Business will benefit for a massive 2-year Tax break for investments. The “Super Deduction “Allowance will let “some “firms offset 130% of the value of investment against tax.

21

Bounce Back Loan. HMRC in conjunction with the Banks is investigating whether loans were legitimately claimed. If not, they will claw back the loans and prosecute the offenders.

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