Blog

Picture of SNP Plus

Budget 2021 – Must know changes

  1. CJRS has been extended to September 2021 as it is. From July 2021 (10%), August (20%) and September (20%), employer has to start contributing.
  2. SEISS grant has also been extended to September 2021.Tax payers who managed to file their personal tax returns relating to FY 2019/20 till midnight of 02/03/2021 will qualify here afterwards.
  3. SDLT in England and NI has also been extended to September 2021. It would not come back after September 2021 to previous slabs. Rather, it will be phased.
  4. New home buyer can avail the benefit of buying home with minimum 5% deposit up to a price of £600,000. Remaining 95% will be Government backed.
  5. One off New Restart Grant of up to £18,000 will be awarded to hospitality, leisure, personal care and gym businesses in England.
  6. Weekly increase of £20 in Universal Tax Credit will be as it is for another six months .
  7. Reduced VAT rate of 5% for hospitality, accommodation and attractions will be extended until September 2021 in entire UK. It will first increase to 12.5% from October 2021 to March 2022 before getting back to pre-Covid rate of 20%.
  8. The legal limit of single contactless payment has been increased to £100.
  9. Small and medium-sized employers can continue to claim 2 weeks’ worth of SSP from the Government.
  10. Personal Allowance and higher rates threshold will be frozen from April 2022 till April 2026.
  11. Current 19% rate of corporation tax will be increased to 25% with effective from April 2023 after a profit of £250,000. The profit up to £50,000 can still enjoy 19% rate with a tapered increase up to £250,000.
  12. IHT rates and thresholds will continue to be same until April 2026.
  13. Fuel and Alcohol duties will again be frozen.
  14. Announcement of new super-deduction to the company investing in new equipment for a period from 01/04/2021 till 31/03/2023. New equipment purchase qualifying main rate of capital allowance can deduct 130% of the investment and that qualifying special rate can deduct 50% of the investment.
  15. And many more…

More Articles
SNP Plus

Know about VAT

Value-Added Tax (VAT) is a tax on consumer spending. It is collected by VAT-registered businesses on their supplies of goods and services for consideration from

Read More »