With the UK having been adversely affected by the coronavirus (COVID-19) pandemic, Chancellor Rishi Sunak presented the 2021 Budget against a backdrop of ongoing economic hardship.
Our Budget Summary (see the link at the bottom of the page) provides an overview of the key announcements arising from the Chancellor’s speech. Measures for businesses include the extension of the furlough scheme until September, a £5 billion restart grant fund as England comes out of lockdown and an increase in corporation tax scheduled for 2023.
Meanwhile drivers will benefit from a freeze in fuel duty and homebuyers will welcome an extension of the stamp duty holiday.
Thankfully there are no immediate changes to VAT threshold, tax rate on dividend income or national insurance rates as had been feared. The increased corporation tax rate to 25% from April 2023 will potentially have an impact on how company profits are most tax-efficiently extracted and we will be looking at this further once more detailed information becomes available.
Additionally, throughout the Summary you will find informative comments to help you assess the effect that the proposed changes may have on you personally, as well as a handy 2021/22 Tax Calendar.
Don’t forget, we can help to ensure that your accounts are accurate and fully compliant. We can also suggest strategies to minimise your tax liability and maximise your profitability.
If you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor’s Budget speech, please do get in touch or call on 01763-853633
Please find our budget newsletter below:Budget newsletter February 2021