Government Updates - The Budget 2021
The Chancellor of the Exchequer presented his Budget to Parliament on Wednesday 3rd March 2021. Below are some of the key points:
Coronavirus Job Support Scheme - Furlough:
Furloughed employees will continue to receive 80% of their salary for hours not worked, up to £2,500 a month, but employers will be asked for a contribution of 10% from July and 20% in August and September towards the hours their staff do not work.
Self-Employment Income Support Scheme (SEISS):
A fourth grant under the scheme will run from February until April, covering up to 80% of three months' trading profits up to £7,500.
There will be a fifth grant from May to September.
People whose turnover has fallen by 30% or more will get the 80% grant, but self-employed people whose turnover has fallen by less than 30% will get a 30% grant.
An increase in Personal Allowances has been announced.
The first £12,570 earnt is tax free with the 20% rate only being charged on everything above , up to the higher tax rate threshold.
The starting point for payment the higher 40% tax rate is now £50,270.
The tax break for homebuyers in England was due to finish at the end of March, however this has now been extended to 30th June 2021 which means no stamp duty is paid on the first £500,000 of a property purchase.
VAT Rate for the Hospitality Industry:
To continue supporting the 150,000 businesses in the tourism and hospitality sectors and to protect 2.4 million jobs, the government has extended the temporary 5% reduced rate of VAT until 30 September 2021.
To help businesses manage the transition back to the standard rate, a 12.5% rate will then apply for a further six months, until 31 March 2022.
If you require further information, please visit the Gov.UK site and search Budget 2021.