How the 2021 Budget affects your business

Budget 2021: This report, which was written immediately after the Chancellor of the Exchequer delivered his budget Speech, highlights the latest is intended to provide an overview of the latest announcements and recent measures most likely to affect you or your business.

Chancellor Rishi Sunak announced the budget 2021 following a prolonged period of economic hardship caused by the coronavirus (COVID-19) pandemic.

This guide contains advice which is designed to assist you with effective tax and financial planning. We can help to ensure that your financial plans remain effective, even as your business and personal circumstances change. We will work alongside you to help you achieve a rewarding and financially secure future.

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Budget 2021: Highlights

Chancellor Rishi Sunak set out a Budget to protect businesses through the pandemic, fix the public finances and begin building the future economy. The

Business

Coronavirus loan schemes In 2020, the government introduced a number of government-guaranteed coronavirus loan schemes. In December 2020 the Chancellor extended, until the end

Capital Taxes

Capital gains tax (CGT) rates No changes to the current rates of CGT have been announced at Budget 2021. This means that the rate

Duties

Alcohol and tobacco duties The duty rates are frozen for beer, spirits, wine and made-wine, still and sparkling cider and perry. The duty rate on

Employment

The Coronavirus Job Retention Scheme (JRS) The current JRS allows an employer to place an employee on furlough and apply for a grant to

Income Tax and Personal Savings

The Chancellor announced the following income tax rates and allowances. Income tax rates and bands 2021/22 2020/21 Band £ Rate % Band £ Rate

Minimum Wage

Increases in the National Minimum Wage and National Living Wage rates occur in April each year. Age NLW 21 – 22 18 – 20

National Insurance

2021/22 Class 1 (employed) rates Employee Employer Earnings per week % Earnings per week % Up to £184 0 Up to £170 0 £184.01

Personal Tax

Universal Credit Universal Credit is a single payment that is made up of different amounts depending on an individual’s circumstances. There is no entitlement

Tax and Travel

Mileage rates Changes to the HMRC business mileage rates are announced from time to time. The fuel only advisory rates below relate to company

Other Matters

Land and buildings transaction taxes Land and buildings transaction taxes are devolved to Scotland (Land and Buildings Transaction Tax) and Wales (Land Transaction Tax).

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