So, another budget day has passed and Chancellor Rishi Sunak has set out his measures in his March Budget. Covid-19 has had a huge influence on the measures he has put in place this year. The Covid-19 vaccine rollout has been given a £1.65 billion cash injection to ensure it continues to be a success. This will hopefully enable the government to lift some of the strict guidelines we have all been living with for the last year. Rishi Sunak has also planned to look after jobs and livelihoods by Extending the Coronavirus Job Support Scheme (Furlough) to September 2021.
An extension of the UK-wide Self Employment Income Support scheme to September 2021, with 600,000 more people who filed a tax return in 2019-20 now available to claim for the first time.
An extension to the temporary cut in Stamp Duty until September 2021
A New mortgage guarantee scheme will enable all UK homebuyers to secure a mortgage up to £600,000 with a 5% deposit.£5 billion for new restart grants which are a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care, and gym businesses in England.
Extension to the vat cut to 5% for hospitality, accommodation, and attractions across the UK until the end of September, followed 12.5% rate for a further 6 months until 31 Mar 2022.
750,000 eligible businesses in the retail, hospitality, and leisure sectors will benefit from business rates relief.
£100 million pounds will also be spent on a Taxpayer Protection Taskforce to crackdown on COVID fraudsters who have exploited the UK Government support schemes. This is a serious warning message to those who have made claims when they shouldn’t have.
From an individual taxpayer’s point of view, there will be no change in the income tax personal allowance and higher rate threshold from April 2022 until April 2026. Businesses however will see Corporation tax rises which are tapered from 19% to 25% depending on profit in 2023.
In our personal lives, Inheritance tax will remain at its current level until April 2026, fuel duty will be frozen for the 11th consecutive year, and alcohol duties will be frozen for the second year running. Adult savers will also still be able to put £20,000 in an ISA this year.
Rishi Sunak also set out many other measures for an investment-led recovery including Eight new Freeports, £375 million towards companies working in life sciences, £20 million towards the offshore power industry, £4 million for biomass feedstocks programme as well as many other pledges.
The full details of the budget can be found here – https://www.gov.uk/government/news/budget-2021-what-you-need-to-know