Budget 2021 Update
It’s an introduction only and should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary. The message from the Chancellor was that this is a Budget with three aims: protecting the jobs and livelihoods of the British people strengthening the public finances supporting an investment-led recovery You can read the individual measures and details of some of the numerous consultations below. Rates and allowances 2021/22 2020/2021 £ £ Income tax rates (non-dividend income) 0% lower rate tax – savings rate only Up to 5,000 Up to 5,000 20% basic rate tax 12,571 to 50,270 12,501 to 50,000 40% higher rate tax 50,271 to 150,000 50,001 to 150,000 45% additional rate tax Above 150,000 Above 150,000 Scottish income tax rates (non-dividend income) 19% starting rate tax 12,571 to 14,667 12,501 to 14,585 20% basic rate tax 14,668 to 25,296 14,586 to 25,158 21% intermediate rate tax 25,297 to 43,662 25,159 to 43,430 41% higher rate tax 43,663 to 150,000 43,431 to 150,000 46% top rate Above 150,000 Above 150,000 Personal allowance Personal allowance 12,570 12,500 Capital gains tax annual exempt amount (after personal allowance) These are frozen at £12,300 for individuals and £6,150 for trusts. Dividend allowance The tax-free dividend allowance is unchanged at £2,000. Corporation tax The corporation tax rate will remain at 19% but from April 2023 the applicable corporation tax rates will be 19% and 25%. Businesses with profits of £50,000 or below will still only have to pay 19% under the small profits rate. Grants – restart ‘Restart Grants’ are available in England of up to £6,000 per premises for non-essential retail businesses and up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses Grants – export The SME Brexit Support Fund grant provides up to £2,000 to help with training or professional advice. Enhanced capital allowances: super deduction This introduces increased reliefs for expenditure on plant and machinery. For qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023, companies can claim in the period of investment: a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main-rate writing-down allowances a first-year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances Annual investment allowance (AIA) Companies will be able to claim £1m as AIA for expenditure incurred from 1 January 2019 to 31 December 2021. The announcement was made in November and before the ‘super deduction’. Apprenticeship funding Apprenticeship incentive payments for employers will increase to £3,000 per new hire until September 2021. Making tax digital (MTD) There were no announcements on MTD except that the government will publish an evaluation on the introduction of MTD for VAT, expected on 23 March. VAT 2021/22 2020/21 £ £ VAT Standard rate 20% 20% Registration threshold 85,000 85,000 Deregistration threshold 83,000 83,000 The VAT registration and deregistration thresholds will not change for a further period of two years from 1 April 2022. The reduced rate of VAT of 5% to the hospitality, holiday accommodation and attractions sector is extended until 30 September 2021. After this date, the VAT rate will be 12.5% to the end...
read moreCoronavirus support: Bounce Back Loans
Today the chancellor, Rishi Sunak has announced a new loan for smaller businesses needing a simpler, quicker solution. “Today, we’re announcing a new loan scheme. A simple, quick, easy solution for those in need of smaller loans. Businesses can apply for new Bounce Back Loans up to a maximum of £50,000, or 25% of turnover, with the government paying the interest for the first 12 months. We’ve been in close talks with the banks in recent days and these loans will be available from 9am next Monday. There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in. For most firms, loans should arrive within 24 hours of approval. And I have decided, for this specific scheme, that the government will support lending by guaranteeing 100% of the loan. We shouldn’t ask taxpayers to bear all the risk of lending almost unlimited sums to businesses who may have very little prospect of paying those loans back – and not necessarily because of coronavirus. So, I don’t think it’s right to provide 100% guarantees on all our schemes. Instead, the new Bounce Back Loans carefully target that extraordinary level of state support at those who need it most. And the £50,000 cap balances the risk to the taxpayer with the need to support our smallest businesses.” We’ll publish more information as the detail is...
read moreCovid-19 – Small Business Grant
The application forms for the small business grant are now available online for: Wakefield Council: https://www.wakefield.gov.uk/business/business-rates/reliefs/small-business-grant Leeds Council: https://forms.leeds.gov.uk/SmallBusinessGrants/ Kirklees Council advise they will write to every qualifying business, any queries can be directed to: business.rates@kirklees.gov.uk Bradford Council also advise that there is no need to apply, they will also write to the qualifying businesses. Sadly, it now looks as though businesses which are not ratepayers in the Business Rates system are not included in this scheme. ...
read moreCovid-19 – Wakefield Council Cash Grant Info
I have had a very constructive conversation with the Wakefield Council business engagement team: They have released the below regarding claiming the business grant. They have also said that if you are unsure whether or not you qualify, please email info@wakefieldfirst.com So if you rent commercial premises but think the landlord gets the rates bill this would a good example, it’s better that they have your details than not. They may be able to support you when they get clarity from the government. “Applying for a Covid-19 cash grant Wakefield Council are working hard to introduce an online application process for the Covid-19 business grants. If you believe you meet the below eligibility criteria to apply for one of the business grants, then please email us on info@wakefieldfirst.com with the name of your business, your name and your email address and we will send out the relevant e-form as soon as it’s available. Eligibility Criteria: Businesses that pay little or no business rates are eligible for a one-off grant of £10,000 if: your business is based in England you are a small business and already receive SBBR and/or RRR you are a business that occupies property Businesses in retail, hospitality and leisure sectors are eligible for a grant of up £25,000 per property. For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000. Businesses in these sectors with a rateable value of between £15,000 and £51,000, will receive a grant of £25,000. You are eligible for this grant if: your business is based in England your business is in the retail, hospitality and/or leisure sector Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used: as shops, restaurants, cafes, drinking establishments, cinemas and live music venues for assembly and leisure as hotels, guest and boarding premises and self-catering accommodation”...
read moreCOVID-19 Government Support Measures
Covid-19 Courtley West Update The government have released a new page with further detail for the support being made available to business. This includes details of: Coronavirus Business Interruption Loan Scheme Business Rates Holiday for Retail, Hospitality and Leisure Cash Grant for Retail, Hospitality and Leisure Coronavirus Job Retention Scheme (The portal is not open yet.) Small Business Grant Funding Statutory Sick Pay Rebate Time to Pay Covid-19 Corporate Financing Facility Business Rates Holiday for Nurseries VAT Deferral Income Tax Deferral for the Self-Employed You can read more here: https://www.businesssupport.gov.uk/coronavirus-business-support/ In addition, if you can’t file your company accounts on time due to the Coronavirus, you may be granted an extension. More details and how to apply can be found here: https://www.gov.uk/government/news/coronavirus-if-your-company-cannot-file-accounts-with-companies-house-on-time ...
read moreCOVID-19 Courtley West Bulletin
COVID-19 We’re in this together and we’re here to support you through this crisis. We’d like to reassure you that we have taken steps to ensure we can operate through this difficult time. Our IT infrastructure is setup so we can work from anywhere with an internet connection, you can still call us and email us. We are geared up for video conferencing which we can host, to ensure our relationship with you is barely affected. The only change at our end that you will see is that we’re not offering ‘in person’ meetings at this time and that if you would like to drop records off at the office please ensure this is agreed in advance. There is no clear timescale for when this disruption will end, so we all need to adapt and work through this together. The government has released a series of unprecedented measures to support business. You can read more about these here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses This includes a package of measures to support businesses including: a Coronavirus Job Retention Scheme deferring VAT and Income Tax payments a Statutory Sick Pay relief package for SMEs a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000 the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans the HMRC Time To Pay Scheme If you are an employee, you can read more here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees This is a difficult time for everyone, we are here with you and you can trust us to do our very best to support you through these unprecedented circumstances. ...
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