The government is committed to levelling up investment across nations and regions to improve living standards nationally, as well as to address disparities in economic and social outcomes. The Budget takes steps towards this by maintaining certain personal tax allowances and thresholds, while, from 2023, the rate of corporation tax paid by the largest and most profitable businesses will increase. The government’s policy on corporation tax is timed to take effect only when the when the recovery is expected to be durably underway. This is the fair, progressive way to continue to fund public services and provide certainty for people’s jobs, investments and long-term prosperity. An increase in the rate of corporation tax from April 2023 will help repair the public finances.
- As a first step, BEIS will lead the development of a digital service to provide businesses with tailored information about appropriate sources of support.
- Temporary approvals for certain excise regimes – The government will legislate to make a minor technical amendment to temporary approvals which are given to a business seeking a review or appealing against HMRC’s decision to revoke certain excise approvals.
- The UK is a world leader in many of the scientific fields that are essential for responding to society’s greatest challenges.
- Coronavirus Job Retention Scheme (CJRS) – To support businesses and employees across the UK through the next stage of the pandemic, the government is extending the CJRS for a further five months from May until the end of September 2021.
- This includes increasing the Administrative Earnings Threshold, which determines how much support and Work Coach time a claimant will receive based on their earnings, for an individual claimant, and removing the couple’s Administrative Earnings Threshold.
VAT on Personal Protective Equipment (PPE) – On 30 April 2020, the government introduced a temporary zero rate of VAT for three months on the sale of PPE to help affected sectors during the initial shock of the COVID-19 crisis when the global supply of PPE did not meet demand. This temporary measure was then extended for a further three months, and following new measures introduced by the government, such as the PPE Portal, ensuring supply of COVID-19 related PPE to affected sectors from 1 November, ended as planned on 31 October. In addition to supporting businesses through these uniquely challenging times, the government has given considerable support to individuals and families. Closed Business Lockdown Payment – Since 5 January 2021, the Closed Business Lockdown Payment (CBLP) scheme has provided further support for businesses which are legally required to close as a result of COVID-19 restrictions. Businesses in England which are legally required to close have been able to claim one-off grants of up to £9,000 per premise, in addition to the monthly grant these businesses are eligible for through LRSG Closed. This will support businesses in Scotland, Wales and Northern Ireland to access loans of between £25,000 and £10 million.
Budget 2021 data sources
A penalty will apply to traders removing seized goods without prior authorisation from HMRC. Company vehicles – From 6 April 2021, fuel benefit charges and the van benefit charge will increase in line with CPI. Vehicle Excise Duty (VED) – The government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2021. This year the government intends Best Accounting Software For Nonprofits 2023 to announce some consultations separately from the Budget, and will publish a Command Paper, ‘Tax policies and consultations (Spring 2021)’ on 23 March 2021. Film and TV Production Restart Scheme – The government will extend the £500 million Film and TV Production Restart Scheme for six months to 31 December 2021 to continue to support the UK screen production industry.
Productions that have not concluded by 1 April 2024 may continue to claim EEA expenditure until 31 March 2025. Capital gains assessment time period – The government will legislate to close an avoidance loophole that can leave HMRC out of time to assess tax due on capital gains when an asset is disposed of under an unconditional contract. The changes Best Accounting Software For Nonprofits 2023 will apply in relation to contracts entered into on or after 1 April 2023 for corporation tax and 6 April 2023 for Capital Gains Tax. Freezing savings tax reliefs – The starting rate for savings will be frozen at £5,000, enabling individuals with less than £17,570 in employment income to receive up to £5,000 of savings income free of tax.
Remaining Budget
The consultation will also consider a process of kitemarking and professional accreditation to assure quality of occupational health services. To ensure occupational health providers can meet this increased demand for their services, the consultation will also consider https://accounting-services.net/startup-bookkeeping-services-tax-preparation/ the supply of occupational health professionals, including through the Long-Term Workforce Plan for the NHS. Planning for later life can be difficult, and some may leave the workforce early without a full understanding of their long-term financial resilience.
Further capture projects will be able to enter a selection process for Track 1 expansion to be launched this year, and 2 additional clusters will be selected through a Track 2 process, with details announced shortly. This will further enhance the attractiveness of the UK as a location for establishing asset holding companies by allowing more relevant companies to make use of the regime. Changes will variously take effect from Royal Assent of the Spring Finance Bill 2023, 20 July 2022 and 15 March 2023, or are deemed to have always had effect.
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BEIS will shortly be publishing a consultation on the merits of strengthening the powers of the Small Business Commissioner (SBC), building on the success the SBC has had in resolving payment disputes. Business support reform – The government will use the CSR to make it easier for businesses to access the information and support that is relevant for them. As a first step, BEIS will lead the development of a digital service to provide businesses with tailored information about appropriate sources of support. Western Gateway Independent Economic Review – The government will support the Western Gateway, a strategic economic partnership across south Wales and the west of England, to oversee an independent economic review to identify long-term economic opportunities and challenges for the region. West Midlands local growth funding – The government is devolving over £160 million from the Local Growth Fund to West Midlands Combined Authority to accelerate progress on the Eastside Metro extension and phase one of the Sprint bus rapid transit network.
