The LB Weekly Roundup - 12 March 2021

Key Points and Budget Highlights:

‣ No changes to income tax, national insurance, or VAT rates; but as income is expected to rise, more people pay tax or go into the higher rates. 

‣ Corporation tax (CT) rates to increase to 25% on profits over £250,000 from April 2023; CT rate at 19% remains for smaller companies with profits under £50,000. Taper relief on CT for profits between the two levels. 

‣ Super-deduction for investment in new equipment; from 1 April 130% tax relief for companies only.

‣ Three year carry back of trading losses – See: https://www.gov.uk/government/publications/extended-loss-carry-back-for-businesses

‣ VAT registration limit frozen at £85,000 until 1 April 2024.

‣ 5% VAT rate for food, attractions, accommodation extended – See details here: https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions

‣ Stamp Duty Land Tax thresholds extended.

‣ Apprenticeship schemes extended.

‣ New grants for high street businesses and hospitality sector – See: https://www.bighospitality.co.uk/Article/2021/03/01/Budget-to-include-5bn-restart-grant-scheme-for-hospitality-and-High-Street-businesses

‣ New business recovery loan scheme – See: https://www.gov.uk/guidance/recovery-loan-scheme

‣ Furlough scheme extended to 30 September – See: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

‣ Self-employed income support grants extended – See: https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension

See our Budget Report or watch last weeks roundup for a more detailed summary of business measures here: https://rebrand.ly/LB_BudgetReport

‣ From 2023 changes to late filing penalties for tax – linked to a percentage of the tax, the percentage increasing as time goes on.

‣ Government continuing to tackle tax avoidance schemes, changes to penalties, and new powers for HMRC to obtain information from financial institutions. 

‣ Free rapid tests for all businesses for regular workplace testing - available to all businesses, including those with fewer than 50 employees. Register interest by 31 March to access free workplace testing. See: https://www.gov.uk/government/news/free-rapid-tests-for-all-businesses-for-regular-workplace-testing

‣ Continuation of the home office equipment expenses COVID-19 easement for the 2021-22 tax year - was due to end on 5 April 2021 but will now be extended to have effect until 5 April 2022. See: https://www.gov.uk/tax-relief-for-employees/buying-other-equipment

‣ Kickstart Scheme update - You no longer need a minimum of 30 job placements to apply directly for a grant. See: https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant

‣ Common mistakes on a VAT return
∙ Poor record keeping
∙ Partial exemption rules not being applied correctly or at all
∙ Fa

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