What does Sunak’s Budget mean for your business?

By DRN Solicitors

17 Mar 2021

calculator-820330_1920.jpg

The Government’s budget has recently been announced, with updates made to several aspects, including income and corporation tax, and an extension to the furlough scheme put into place. 

What does the new budget mean for you and your business?  

Extension to Furlough Scheme and Self-Employment Income Support Scheme 

The Furlough Scheme and the Self-Employment income support scheme have both been extended to September 2021. 

Furloughed employees will continue to receive 80% of their wages until the scheme ends, but as the scheme is gradually phased out towards the end of the year, employers will be required to begin making contributions of 10% in July, and 20% in August and September.

Restart Grants 

£5 billion has been assigned to new Restart Grants, which will provide a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care, and gym businesses in England.  

Apprenticeship Hiring Incentive 

The apprenticeship hiring incentive in England has been extended to September 2021, offering an increase in payment of £3,000. 

Income Tax 

The Chancellor announced that no changes will be made to income tax rates or national insurance rates, whilst personal income tax allowance is set to be frozen at £12,570 from April 2022 to April 2026, with the threshold for higher rate income tax also frozen, being kept at £50,270 from 2022 to 2026. 

Corporation Tax 

We are set to see a corporation tax rise on company profits in April 2023, when it will increase from 19% to 25%. 

The rate is set to be kept at 19% for smaller companies with profits of less than £50,000, and will be tapered so that only businesses with profits exceeding £250,000 per year will be taxed at the 25% rate. 

The rules for carrying back losses will also change. Businesses can currently carry back losses for 12 months, but this will be extended to 36 months. 

Super-Deduction 

Set to start in April 2021, the new super-deduction will cut companies’ tax bill by 25p for every £1 they invest in new equipment. With companies able to deduct investment costs from tax bills, the taxable profits will be reduced by around 130%.

This move will be worth around £25 billion to UK companies over the two-year period the super-deduction will be in effect. 

VAT 

Hospitality businesses will benefit from a reduced VAT rate of 5%, which will be maintained until September. From September onwards, an interim 12.5% rate will apply for the following six months. 

Other budget announcements 

Stamp Duty Holiday

The stamp duty holiday that was first introduced in July 2020 in a bid to boost the UK property market will be extended to June 2021, with homebuyers relieved from paying stamp duty on all property purchases up to the value of £500,000. 

Mortgage Guarantee 

The new mortgage guarantee scheme will allow buyers to purchase a property with a small deposit of just 5%, guaranteeing a loan of up to 95% on properties valued up to £600,000. 

Looking for advice? 

DRN’s specialist HR and Employment Law team are dedicated to providing sound, reliable business advice that you can trust. For more information surrounding best business practices in the current climate, please contact a member of our team on 01282 433241. 

Latest news

1

Financial Affairs support the Red Rose Award winners' reception Networking photograph

Financial Affairs support the Red Rose Award winners' reception

24 Apr 2025

2

Lancaster University unveils cutting-edge computing and cyber security facilities Head of Lancaster University's School of Computing and Communications Professor Nigel Davies, Chris Ensor, Vice-Chancellor Professor Andy Schofield and Pro-Vice-Chancellor (Engagement) Professor Sarah Kemp

Lancaster University unveils cutting-edge computing and cyber security facilities

24 Apr 2025

3

Northcote announces new owners Alf and Clare Ellis as Lisa Goodwin-Allen returns as chef patron-director Craig Bancroft and Lisa Goodwin-Allen

Northcote announces new owners Alf and Clare Ellis as Lisa Goodwin-Allen returns as chef patron-director

24 Apr 2025

4

Major shareholder makes Inspired takeover bid inspired-500x500.png

Major shareholder makes Inspired takeover bid

23 Apr 2025

5

Nominate your favourite family-run business in Lancashire. Thompsons meeting (1).png.png

Nominate your favourite family-run business in Lancashire.

22 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin