On Wednesday the Chancellor Rishi Sunak delivered his budget to parliament, and set out the country’s road to recovery.
but what does this mean for you and your business? below we have digested the most salient points for your business.
The furlough scheme has been extended until the end of Sept-21, although employers will have to contribute from July
New loan scheme to be introduced
Bounce Back loans (BBL) and Coronavirus Business interruption loans (CBILS) are to be replaced with a new scheme that will run until the end of 2021. loans can be between £25k-£10m
Corporation Tax is set to increase from 19% to 25% in 2023 , however the full 25% will only be paid by companies with profits of over £250k. for companies with profits of less than £50k the 19% rate will remain.
Over the next 2 years when business’s invest they will be able to take advantage of the “super deduction”, this means 130% of the investment cost will be utilised to reduce taxable profits,
Hospitality, Retail and Leisure
These sectors have been some of the hardest hit throughout the coronavirus pandemic, and as such the chancellor has announced some special measures:
The rates holiday has been extended until June and the remaining 9 months of the year will be at a discounted rate.
The reduced VAT rate of 5% will be extended until Sept-21 with an interim rate of 12.5% running from Oct 21 – Apr 22
New grants have been announced worth up to £6k for non essential retail and £18k for pubs, restaurants, gyms and other business units that have been closed for longer periods.
The budget announcement affects us all in different ways depending on our own set of circumstances, if you would like to discuss how the chancellors announcements can benefit you and your business contact us today.