COVID-19 support
The furlough scheme will continue in its current form until 30 June 2021, ensuring furloughed workers continue to get up to 80% of their wages for the hours not worked.
From 1 July 2021, employers will contribute towards the costs of unworked hours, starting with 10% in July, then 20% in August and September. The furlough scheme is set to end on 30 September 2021
The fourth taxable grant available through the self-employed income support scheme will cover 80% of average trading profits from February to April 2021.
Following this, a fifth and final grant will cover the period from May to September 2021. A turnover test will determine the amount of grant available and applications are expected to open in July 2021.
Self-employed people whose turnover has fallen by 30% or more will be able to claim the full 80% grant. Anyone else will be able to claim a lower grant, worth 30% of their average profits.
Business rates
Eligible retail, leisure or hospitality firms in England with rateable values of £51,000 or less will continue to pay no business rates until 30 June 2021.
From 1 July 2021, this will be followed by 66% business rates relief until 31 March 2022.
This is capped at £2m per business for properties that were forced to close on 5 January 2021, or £105,000 per business for other eligible properties.
VAT
The reduced rate of 5% VAT for goods and services supplied by the tourism and hospitality sectors has been extended until 30 September 2021.
To help these businesses manage the transition back to the standard 20% rate, a 12.5% rate will apply until 31 March 2022.
The VAT-registration and deregistration thresholds are unchanged at £85,000 and £83,000, respectively, until 1 April 2024.
Corporation tax
From April 2023, the main rate of UK corporation tax will increase from 19% to 25% on profits of more than £250,000.
The main rate of UK corporation tax for small profits of less than £50,000 will remain at 19%.
There will also be relief for limited companies with profits of less than £250,000, so they pay less than the main rate.
Talk to us for more information on the Spring Budget.