A quick re-cap of the 2021 Autumn budget

Published by Sandra Smith on

A quick re-cap of the Autumn budget

Last month the Chancellor Rishi Sunak announced the details of the 2021 autumn budget, we thought it would be worth a quick re-cap of the key announcements which could impact you and your business.

Business rates

A temporary 50% cut in business rates for one year will apply to the retail, hospitality and leisure sectors. The savings will be capped at £110,000 which will be worth more than £1.8bn in total.

From 2023, a new business rates relief will provide investment in property investments so any business carrying out ‘qualifying improvements will not face higher business rates.

R&D tax reliefs

The Government is keen for businesses in the UK to lead the way in research and development. Expanding the R&D tax relief to include data and cloud computing costs from April 2023, will assist many new businesses in developing a new product or service.

Recovery loan

The recovery loan scheme has now been extended for a further six months until 30th June 2022. The loan will be 70% backed by the Government and businesses can apply for up to £2 million. The extension will give more businesses the opportunity to bounce back after the pandemic.

National Insurance

From April 2022, National Insurance rates will increase by 1.25% for one year. Following this the ‘health and social care levy’ will be introduced (also at 1.25%).

Capital Gains Tax

The rule requiring Capital Gains Tax (CGT) on UK residential property to be reported and paid to HMRC within 30 days has now been increased to 60 days after completion.

Creative tax relief

Tax relief for museums, theatres, galleries and orchestras will continue until 2024, the support will help those in the creative industry after being closed for so long during the pandemic.

National living wage

As previously announced the national living wage will increase in April 2022 by 6.6%. The rise will see the hourly rate rise to £9.50. The national minimum wage for those aged 21-22 will also go up to £9.18 per hour whilst those aged 16 or over will receive £4.81 per hour.

VAT

VAT rates will return to their original level of 20% (after being reduced during the pandemic to 12.5%) from April 2022.

Get in  touch with the friendly Clear Vision Financial Management team to find out how we can help you with your accounting needs. You can call us on 01794 330025 or email us.