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Key Points For Businesses - 2021 Budget

Updated: Jun 23, 2021

• Furlough scheme will be extended until the end of September 2021 - the government paying 80% of salary. Employers will be asked to pay 10% from July and 20% from August.

• Help for the self-employed will be extended - an additional 600,000 more people will be eligible for help.

• Self-employment income support scheme has been extended. The fourth grant will cover February to April 2021 worth 80% of average trading profits up to £7,500.

• £5bn restart grant for businesses to help companies get going after lockdown.

• 100% business rate holiday in England until the end of June 2021 followed by discounts of up to two thirds for the rest of the year.

• Tax-free personal allowance to be frozen at £12,570 from April 2021 levels to 2026

• Higher rate income tax threshold to be frozen at £50,270 from April 2021 levels to 2026

• Launch of a new loan scheme to run until the end of the 2021. Loans can be between £25,000 and £10m.

• 5% reduced rate of VAT will be extended until the end of September. VAT will then be increased in stages at 12.5% for six months, before returning to the standard rate from April 2022.

• In April 2023, the rate of corporation tax will increase to 25% for businesses with profits of more than £250,000 (approx. only 10% of companies will pay the full higher rate). Companies with profits of less than £50,000 will remain at 19%.

• The government is investing £25bn by allowing a 130% super-deduction on tax for investments made by companies. This means firms can cut their taxes by up to 25p for every pound they invest.

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