The Chancellor, Rishi Sunak announced on Wednesday 3rd March 2021 a number of schemes which are set to both end and begin as the UK looks to rebuild its economy. Below is a summary of what we can expect for all businesses:
Coronavirus Support
- Furlough extended until the end of September
- The Self-employed incomes support scheme (SEISS) has been extended until September with those who became self-employed last year now able to claim these grants
- A £20 weekly Universal Credit increase worth £1,000 a year is to be extended for another six months
- Working Tax Credit claimants will get £500 one-off payment
- Minimum wage will increase to £8.91 an hour from April
- The Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan schemes will come to an end on 31st March; however, they will be replaced by the Recovery Loan Scheme (RLS). This scheme will allow businesses of any size to apply for loans from £25k up to £10m until the end of 2021.
- The 100% business rates holiday introduced for companies in the retail, hospitality and leisure sectors will continue to run until the end of June 2021. In addition, a percentage of these businesses will receive a 75% cut in their business rates next year.
- New Grants of up to £6,000.00 will be made available for businesses looking to re-open. This will be followed by the hospitality and leisure sectors which will be eligible for grants of up to £18,000.
- The Corporation tax rate will increase to 25% from April 2023. However, companies with profits below £50,000 will retain the current 19% as a “small profits rate”. In addition, where profits are above £50,000 but below £250,000.00, there will be an entitlement to marginal relief.
- VAT – The reduced rate of 5% VAT for the hardest hit sectors will continue until 1st October. Following this, an interim rate of 12.5% will be introduced before returning to the normal rate of 20% in April next year.
- The Apprenticeship scheme will allow businesses that take on apprentices to receive payments of £3,000 (up from £1,000) for all new hires of any age.
- The Help to Grow scheme means business schools across the UK can offer MBA-style management training with 50 hours of tuition and mentoring.
And finally..
The 130% Super Deduction
The new Super deduction system has ‘never been tried’ in Britain before and represents the ‘biggest business tax cut in modern British history. From 1 April until 31 March 2023, businesses procuring ‘qualifying’ new plant and machinery will be able to claim the ‘super deduction’ on their tax bill. The chancellor has brought in this measure as a result of businesses reducing their investment in machinery following the pandemic. The Treasury said, ‘ this super-deduction will encourage firms to invest in plant and machinery assets which will in turn make their businesses more efficient and productive. This new scheme will enable companies to cut their tax bill by up to 25p for every £1 they invest. The companies which will benefit from the super deduction scheme will be in the manufacturing and construction industries. The Treasury thinks the super deductions scheme will ensure Britain’s capital allowances system will be among the most competitive in the world.
If you would like to find out more information about any of the above then please get in touch today for a free, no obligation and friendly discussion. In addition, if you are looking to source a business asset whatever sector you are in, please get in touch. No matter how big or small your business is and or the balance you would like to finance is, we have a wealth of experience in all sectors to help you make the right decision for your business.
Please get in touch today:
E: enquiries@buckinghamleasing.co.uk
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Jack Bridges
Buckingham Leasing