April 2021 will bring several new rule changes, schemes and laws – with some coming in from today. With the budget announcements last month and lockdown rules relaxing, means there are more things to be aware of.
Here are some of the things that are changing that may impact you or your business.
From 1st April 2021
Super-deduction
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
a 130% super-deduction capital allowance on qualifying plant and machinery investments
a 50% first-year allowance for qualifying special rate assets
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest.
Restart Grant Scheme
The Restart Grant scheme supports businesses in reopening safely as COVID-19 restrictions are lifted. Grants are available from 1 April 2021.
Eligible businesses in the non-essential retail sector may be entitled to a one-off cash grant of up to £6,000 from their local council.
Eligible businesses in the hospitality, accommodation, leisure, personal care and gym sectors may be entitled to a one-off cash grant of up to £18,000 from their local council.
National Minimum Wage and National Living Wage increases
The National Minimum Wage and National Living Wage rates will increase on 1st April 2021. In addition to the new rates, the age from which workers become eligible for the National Living Wage will be lowered. From 1st April all workers aged 23 and over must be paid the National Living Wage or above.
From 6th April 2021
Recovery Loan Scheme
The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close, providing support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.
The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
The scheme launches on 6 April and is open until 31 December, subject to review. Loans will be available through a network of accredited lenders, whose names will be made public in due course.
Tax allowances and thresholds
The amount you can earn before having to pay income tax - known as personal allowance - is rising to £12,570 on April 6. The starting point for higher earners (40% taxpayers) will jump to £50,000.
IR35 changes in the private sector
The off-payroll working rules (known as IR35) were originally due to change in April 2020, but the government delayed reform by a year because of the Coronavirus pandemic.
Planned from 12th April 2021
No earlier than 12 April will be the re-opening for many businesses and premises:
· Non-essential retail shops
· Personal care services such as hairdressers and nail salons
· Public buildings including libraries and community centres
· Indoor leisure facilities such as gyms
· Outdoor attractions such as zoos and theme parks
· Self-contained accommodation such as campsites and holiday lets
· Hospitality venues can serve outdoors with table service
From 19th April 2021
Mortgage Guarantee Scheme
The scheme will be open to new 95% mortgages from 19 April 2021, with participating lenders offering 95% mortgages under the government guarantee from this date.