Today the chancellor delivered the budget, unveiling his plans to help with the UK's recovery from the Coronavirus pandemic. Below we have summarised some of the key announcements made.
SEISS Grants
The Self-Employed Income Support Scheme has been extended with grants to cover February to April. As before these grants will be worth 80% of average trading profits, up to £7,500.
Furlough Scheme
The furlough scheme is to be extended until the end of September. Employers will continue to pay 10% of costs through to July, when their contribution will increase to 20%.
Corporation Tax
From April 2023 corporation tax will be 25%. To help protect small businesses a £50,000 small profits rate will be introduced, set at the current rate of 19%. Once a company’s profits rise above £50,000 a taper will apply, so that only businesses with profits above £250,000 will have to pay the 25% rate.
Super Deduction
From April 2021, for a two year period, companies can reduce their tax bill by 130% of the costs of investments.
VAT
5% reduced rate for hospitality will be extended to September, with a rate of 12.5% introduced until April next year.
Excises Duties
Alcohol and fuel duties frozen again.
Business Rates Holiday
The businesses rates holiday for those in the hospitality and leisure sector will continue to the end of June, with a two-thirds discount offered for the remainder of the tax year.
Restart Grant
Restart Grants to be offered to businesses in the hospitality, accommodation, leisure, personal care and gym sectors in England. These grants will be worth up to £18,000.
Recovery Loan Scheme
A new loan scheme, the Recovery Loan Scheme, will be launched. Loans under the scheme will have 80% of their value backed by Government. The loans offered under the scheme can range from £25,000 to £10m.
Stamp Duty
Holiday extended until the 30 June, with an interim threshold of £250,000 for three more months. From October, the threshold will return to £125,000.
Mortgage Guarantee
New 5% deposit mortgages.
Universal Credit and Working Tax Credits
The £20 increase to universal credit will continue for six months.
Working Tax Credit claimants to be given a one-off payment of £500.
National Living Wage
The National Living Wage is to increase to £8.91 per hour.
Apprenticeships
The apprenticeship hiring incentive in England is to be extended to September 2021 and the payment will be increased to £3,000. Additionally, an extra £126m will be provided to fund 40,000 more traineeships in England for 16-24 year olds in 2021/22 academic year.