The Chancellor of the Exchequer presented his Budget to Parliament on Wednesday 3 March 2021. Budget 2021 sets a path for recovery. A £65 billion three-point plan to provide support for jobs and businesses as we emerge from the pandemic and forge a path to recovery.
Below are a few points which we believe are important for our clients.
Personal Allowance will be frozen
Personal Allowance will be raised to £12,570 in April 2021 but it will be frozen till 2026
Employer NI Allowance: no changes
Employees do not need to pay the first £4,000 of Employer NI. Note: there are some exceptions.
Corporation tax
CT is set to rise in the financial year 2023/2024 but a business with a small profit of under £50K will continue paying at the rate of 19%.
VAT deferral
The new VAT deferral payment scheme is open till 21 June 2021.
Dividend allowance
The tax-free dividend allowance is unchanged at £2,000.
Penalties on late payments of taxes (Income Tax, VAT)
A point-based system will be introduced.
Further details can be found HERE.
The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.
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