Is your business prepared for the changes announced in the 2021 budget?
Changes were made in the announcement which will impact UK businesses of all sizes and industries.
1. Corporation Tax
Tax on company profits has been set to rise from 2023 from its current 19% up to 25%. The changes will be introduced on a tiered basis with businesses earning less than £50k profit seeing no impact on their tax rate, and those earning more than £250k paying the full 25%.
It’s important businesses who will be affected by this change (ie earning more than £50k profit from 2023) are planning ahead now to mitigate the impact on their business.
2️. Recovery Loan Scheme
A new loan scheme, the RLS, will provide up to £10m per business of government-backed money. Businesses of all sizes can apply and the funding will be available in different forms from loans to invoice financing.
The scheme launches at the start of the tax year, on 6th April 2021, and is due to run to the end of the year - however it was highlighted that this end date is subject to review.
3️. Self Employment Income Support Scheme (SEISS)
A fourth and fifth grant will be made available to self-employed people from April 2021. An additional 600,000 people who filed a self-assessment return for the 19/20 tax year will be eligible.
The portal is expected to open for claims for grant 4 in April 2021.
4️. CoronaVirus Job Support Scheme (Furlough)
Financial support for employers has been extended to September 2021.
It's really important you're planning now to minimise the impact of tax rises on your business and to take advantage of funding where needed.
If you want to discuss how any of the recent changes impact your business get in touch and we’ll be happy to help.