2021 Budget Highlights

Treasury Chancellor Rishi Sunak has announced his 2021 Budget. Here is the summary of the key changes in the Budget: 

• Personal Allowance to increase from £12,500 to £12,570 in fiscal year 2021/22.
• Higher rate Threshold will increase marginally from £50,000 to £50,270.
• Corporation tax to remain at 19% to 31 March 2022. From 1 April 2023 the main rate of corporation tax will increase to 25%. The rate will remain at 19% for small businesses.
• The National Living Wage will increase in April 2021 from £8.72 an hour to £8.91.
• The annual exemption for capital gains tax will remain at £12,300.
• The reduced VAT rate for hospitality businesses will remain at 5% to 30 September 2021. The rate will increase to 12.5% until April 2022.
• The stamp duty holiday was extended to 30 June 2021.
• Plans to introduce IR35 changes to the private sector will commence from 6 April 2021.
• The Furlough Scheme has been extended to 30 September 2021.
• The Self employed grant will be extended for two more tranches and will include new sole trader businesses registered in 2020.

In summary, there are no major surprises in the Budget. A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.