BUDGET – MORE DETAIL TO FOLLOW
The Chancellor has delivered his budget without any real surprises. A lot of detail needs to be added and will probably emerge in the next few weeks or months. Some of the main points which may affect our clients are:
FURLOUGH SCHEME
The Furlough Scheme (CJRS) has been extended to September with employers contributing 10% in July and 20% in August and September.
SELF-EMPLOYED
According to the announcement the SEISS (Self-employed Income Support Scheme) will continue and be extended so that 600,000 additional people will be eligible. Details will follow.
VAT
The 5% reduced rate of VAT for tourism and hospitality will continue for 6 months and will then be replaced with a 12.5% rate for 6 months.
BUSINESS RATES
The Business Rates holiday (100%) will be extended until June so business rates for 2021/22 will effectively only be 75% of the full rate.
CORPORATION TAX
An increase in corporation tax to 25% in 2023 was announced. This will only apply to businesses with #profits in excess of £250,000. We think there will actually be three rates of corporation tax with small businesses (less than £50,000 profit) only paying 19% and those between £50,000 and £250,000 paying a rate in between.
ALCOHOL AND FUEL DUTIES
ALCOHOL AND FUEL DUTIESThese are to be frozen.
GRANT FOR RETAIL, HOSPITALITY AND LEISURE
Described as a “Restart Grant”, non-essential retail businesses will receive grants of up to £6,000 per premises and hospitality and leisure businesses will receive grants of up to £18,000.
No definition of “up to” was given so we don’t know how these will be calculated. We understand they will be paid via local authorities.
We can’t cover everything, just the highlights as they are likely to apply to our clients. As more detail emerges, we will post it here and on our website – www.centralbusiness.co.uk – and ensure affected clients are advised.
To discuss how the budget announcements might affect you, you can call us, email us or use the form below.
Telephone – 01509 816150
Email – enquiries@centralbusiness.co.uk
