Whitley Morgan Business Coaching


Budget 2021 Summary

Chancellor Rishi Sunak delivered his first Budget 2021 in the House of Commons today, announcing the government’s tax and spending plans for the year ahead.

Here is a summary of the main points:

  • Help small businesses develop digital skills by giving them free expert training and a 50% discount on new productivity-enhancing software, worth up to £5,000 each.
  • Fuel duty increase is cancelled
  • When companies invest in capital / equipment for next 2 year reduce tax bill by 130% called Super Deduction
  • Losses to be made generous carry back losses of up to £2M for three years
  • businesses with profits of £250,000 or greater will be taxed at the full 25% rate. <£50,000 profits 19%
  • CT rate in April 2023 to 25%
  • Rishi Sunak has set out his support measures for business in full, the largest of which, the furlough and self-employed support extension to September, we already knew about.
  • The bulk of the other existing measures have also been prolonged. So the 100% business rate relief will continue until June, and then reduce to two-thirds until the rest of the year; emergency loans of between £25,000 & £10m will be available; and “re-start” grants of up to £6,000 will go to non-essential retailers, and up to £18,000 for hospitality and personal service businesses.
  • The VAT cut to 5% for food and drink will also extend to September, though for the first three months pubs and restaurants will remain closed indoors. This is broadly what business wanted to help it limp towards the full re-opening of the economy.
  • Next year PA £12570, but remain for two years
  • Freezing tax thresholds
  • 95% mortgages will be guaranteed by the government , so a 5% deposit scheme for up to £600,000 loans
  • The stamp duty holiday on properties worth up to £500,000 will be extended until the end of June
  • Hospitality and tourism will continue to enjoy a 5% reduced rate of VAT for a further six months
  • The business rates holiday will be extended until the end of June, the chancellor says, with a two-thirds discount for the remainder of the tax year.
  • A new restart grant of up to £6,000 per premises in April and up to £18,000 for firms that open up later
  • Businesses will be given incentive payments of £3,000 for all new hires of any ages.
  • Working Tax Credit claimants will also be given more support for the next six months, with a one-off payment of £500
  • The Universal Credit uplift of £20-a-week will continue for another six months
  • Support for the self-employed will also be extended until the end of September – with 600,000 more people eligible
  • “When the scheme was launched, the newly self-employed couldn’t qualify because they hadn’t all filed a 2019-20 tax return,” Rishi Sunak says. “But as the tax return deadline has now passed, I can announce today that, provided they filed a tax return by midnight last night, over 600,000 more people, many of whom only became self-employed last year can now claim the fourth and fifth grants.”
  • Chancellor announces that the furlough scheme will be extended until the end of September on same basis, up to 80%


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