Update for businesses from Budget 2021
Publication date:
March 3, 2021
The following information was released by Chancellor Rishi Sunak today, 3 March, outlining plans for the 2021 Budget. The full budget can be found on the main government pages (external link), but below are the key points relating to businesses.
COVID-19 (Coronavirus) support
- The furlough scheme is to be extended until the end of September
- Government to continue paying 80% of employees' wages for hours they cannot work
- Employers to be asked to contribute 10% in July and 20% in August and September
- Support for the self-employed also to be extended until September
- 600,000 more self-employed people will be eligible for help as access to grants is widened
- £20 uplift in Universal Credit worth £1,000 a year to be extended for another six months
- Working Tax Credit claimants will get £500 one-off payment
- Minimum wage to increase to £8.91 an hour from April
Business, digital and science
- Tax breaks for firms to "unlock" £20bn worth of business investment
- Firms will be able "deduct" investment costs from tax bills, reducing costs by 130%
- Incentive grants for apprenticeships to rise to £3,000 and £126m for traineeships
- VAT rate for hospitality firms to be maintained at 5% until September
- Interim 12.5% rate to apply for the following six months
- Business rates holiday for firms in England to continue until June with 75% discount after that
- £5bn in re-opening grants for non-essential businesses worth up to £6,000 per premises
- New visa scheme to help start-ups and rapidly growing tech firms source talent from overseas
- Contactless payment limit will rise to £100 later this year
- New visa scheme to help start-ups and rapidly growing tech firms source talent from overseas
Taxation
- Corporation tax on company profits to rise from 19% to 25% in April 2023
- Rate to be kept at 19% for about 1.5 million smaller companies with profits of less than £50,000
The arts and sport
- £400m to help arts venues in England, including museums and galleries, re-open
- £300m recovery package for professional sport and £25m for grassroots football
For all the latest updates and changes please visit the main government page at GOV.UK.
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