Hot off the press…
In his Budget speech Chancellor Rishi Sunak pledged that the government will continue doing “whatever it takes” to support British people and business, as well as starting to fix public finances and building a future-proof economy.
- Economy is expected to return to pre-Covid levels by the middle of next year
- Unemployment expected to peak at 6.5% lower than the 11.9% as previously predicted
- Furlough will be extended to September with no change in terms. After July, businesses will be asked to provide a 10% contribution, rising to 20% in August and September
- Support for the self-employed will also continue until September
- Universal credit uplift will be extended to September
- National Living wage will rise to £8.91 from April
- Super Deduction: For the next two years, businesses can claim 130% of their new machinery cost as a tax cut
- Corporation tax will increase to 25% in 2023, however 70% of companies – with profits of £50,000 or less will still only be liable for the current 19% rate while only those with profits of £250,000 or more will pay the full 25%.
- Companies will be able to offset losses against their tax bills going back up to three years, allowing them to claim additional refunds of up to £760,000
- Grants worth up to £6,000 for non-essential retailers and £18,000 for restaurants, pubs, personal care and gym businesses which will reopen later
- £700m will go on supporting arts, culture and sports as they reopen
- Alcohol and fuel duties frozen
- A “help to grow” scheme will offer smaller businesses management and digital training
- No mention of off payroll IR35 reforms indicate they are to go ahead unchanged from 6th April 2021
Full report to follow.