Sunak set out Budget to protect businesses
The Chancellor once again pledged to do ‘whatever it takes’ during the COVID-19 pandemic. The furlough scheme has been confirmed to be extended until September 2021 to support jobs through the crisis.
Mr Sunak also confirmed that the Self-Employment Income Support Scheme (SEISS) has also been extended, with two further grants this year. This is claimable by the self-employed, including the newly self-employed from 6th April 2019. However, this is provided they have filed their 2019/20 tax return for by midnight on 2nd March 2021.
The stamp duty nil rate band on residential properties in England up to £500,000 will continue until the end of June. It will taper to £250,000 until the end of September, and then return to the usual level of £125,000 from 1st October 2021.
To support businesses as they re-open following lockdown, £5 billion will be made available in restart grants. Non-essential retail businesses re-opening first will be eligible for up to £6,000. However, the leisure and hospitality sectors, who are most affected and will re-open later, will be eligible for up to £18,000.
In spite of this, the rate of corporation tax will increase to 25% in April 2023 for companies with profits over £250,000. This is also whilst retaining a Small Profits Rate of 19% for companies with profits of £50,000 or less.
The Chancellor also introduced a super-deduction for companies investing in qualifying new plant and machinery. Under this measure, a company will be allowed to claim 130% on most new plant and machinery investments. This would usually qualify for 18% main rate writing down allowances.
Rishi Sunak has also confirmed the location of the eight Freeports in England. Freeports are special economic zones with favourable tariffs. The lower taxes make it easier and cheaper to do business.
Danielle Harvey ACA, of Harvey, Telford & Bates, says:
“The Budget proposed provides support for businesses and the self-employed through a variety of schemes and grants. At Harvey, Telford & Bates, we are on-hand to help guide you. To ensure you benefit from the support provided, why not speak to our expert team if you require guidance”
For more information and to get guidance from our expert team, please call us on 01743 462604 or email us at [email protected] .
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