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Support measures announced in the Spring Budget 2021

COVID Support Measures

  • The furlough scheme is to be extended until the end of September; employers will have to contribute 10% in July and 20% in August and September
  • Two further SEISS grants will be paid to the self-employed in 2021
  • 600,000 of the newly self-employed will become eligible for the SEISS grants
  • The £20 uplift in Universal Credit will be extended for another six months
  • VAT for hospitality firms will remain at 5% until September, followed by an interim rate of 12.5% for six months
  • The business rates holiday has been extended until June and business rates will then be discounted for nine months
  • Non-essential retail businesses are to get re-opening grants of up to £6,000 per premises
  • Hospitality and leisure businesses (that will open later) will be eligible for grants worth up to £18,000

Business Taxes

  • Corporation tax: From April 2023, the main rate will increase to 25% on profits over £250,000. A small businesses rate of 19% will be introduced for businesses with profits below £50,000. There will be taper relief for businesses with profits between £50,000 and £250,000.
  • VAT: The temporary reduction in VAT for hospitality and leisure businesses will be extended until the end of September 2021. It will then increase to 12.5% until 31 March 2022, when it will return to 20%.
  • VAT: The registration (£85,000) and deregistration (£83,000) thresholds will remain unchanged from now until 31 March 2024.
  • Capital allowances: Companies investing in qualifying plant and machinery will benefit from a new 130% first-year capital allowance or ‘Super deduction’. They can also benefit from a 50% first-year capital allowance on qualifying special rate and long-life assets.
  • Business rates: Businesses in the retail, hospitality and leisure sectors in England will continue to benefit from 100% business rates relief until 30 June 2021. This will be followed by a period of 66% rate relief for qualifying businesses until 31 March 2022 (capped at £2 million per business).
  • Business rates: The multiplier used to calculate business rates has been frozen for 2021/22.
  • Loss carry back: The trading loss carry back rule will be temporarily increased from one to three years for all businesses.
  • Company vehicles: Fuel benefit and van benefit charges will increase in line with CPI from 6 April 2021.
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