Accounting, Tax Advice

Spring Budget 2021 – Your Questions Answered

by Daniel Medlen

Mar 2, 2021

The Budget this year was evidently focused around the challenges, particularly financial, that we have endured as a result of the pandemic. Rishi Sunak, outlined key measures that will continue to help support businesses and individuals recovering from the pandemic but also what will need to take place in order to help the UK economy recover.

Your Budget Questions

Is the 95% mortgage coming back?

Yes! The government are going to offer guarantees so most of the top 5 or 6 lenders are onboard. We would definitely recommend speaking to a mortgage advisor if you are looking to utilise this offer.

If we’ve made a loss this year, what can we do?

You will now be able to carry these losses back upto 3 years against previous years profits. Make sure you complete your year-end accounts and company tax returns as soon as possible.

I’m in the middle of buying a house, will I have to pay the stamp duty?

The stamp duty holiday has been extended until the end of June. The 0 rate band will then reduce to 250k threshold before returning to its original 125k threshold from 1st of October.

Download your Budget summary

Covering the key takeaways that you need to be aware of from a business point of view.
Download here

Is corporation tax going to increase?

Yes, it’s going to increase to 25% in 2023. However, this is only applicable to companies with profits above 250k. This will therefore only impact 10% of companies.

Do I need to pay business rates again?

Business rates relief for the hospitality and retail sector has been extended until the end of June. It will then be a 66% discount for a further 6 months for closed businesses.

I own a restaurant, what’s happening to VAT?

Reduced VAT for tourism and hospitality businesses will remain at 5% until the 30th of September 2021.

When has the furlough scheme been extended to?

The Job Retention Scheme (furlough) has been extended until the 30th September.

Will employers now have to contribute towards furlough claims?

Yes but not straight away. Employers will be expected to pay 10% of hours not worked in July. Further increasing to 20% for August and September.

Has the self-employed Grant also been extended?

Two further self employment grants have been confirmed, with the same rules applying for February – April. However the final grant, in order to receive the full 80%, turnover must have fallen by 30%.

I need a business loan is CBIL’s finishing?

Yes that is correct. However a new recovery loan is launching on the 6th of April and will allow businesses to apply for finance between 1k and 10m until 31st of December.

Looking for further support?

We would recommend seeking professional advice, whether that be HMRC directly, your accountant or a VAT specialist.

Our chartered accountants are fully equipped to help you understand this in more detail so please feel free to reach out to us: [email protected]