Here are the headline announcements from the Chancellor’s Spring budget:
- The furlough scheme will continue until the end of September 2021. In July, employers will be required to pay 10% of wages to employees, increasing to 20% in August and September.
- Self Employed grants will continue, with one grant to cover the February – April period, and a final one to cover the period from May onwards. An additional 600,000 claimants are now expected to be eligible following submission of February’s tax returns.
- The National living wage will increase from April
- A new Restart Grant will be introduced to help closed businesses reopen. Those in non essential retail, currently due to open on April 12th will be eligible of a grant of up £6k.
- Later opening businesses, including hospitality, hotels, gyms, as well as personal care and leisure firms will receive grants of up to £18k.
- A new recovery loan scheme will introduced, guaranteed to 80% by the government, offering between £25k and £10m.
- The business rates holiday for retail, hospitality and leisure businesses will continue until the end of June, then rates will be reintroduced at lower interim rate.
- The 5% reduced VAT rate will continue in the hospitality sectors until September, followed by an interim rate of 12.5% until the end of April 2022.
- Contactless payments limit increased to £100
- Personal income tax thresholds will be raised as planned in 2022, and then held until 2026.
- Alcohol and fuel duties continue to be frozen
- Corporation tax will increase in 2023. The most profitable companies (profits £250k+) will pay 25% corporation tax, tapering down to 19% for businesses with profits of £50k or less.
- Companies will be able to carry back losses over three years to enable greater tax rebates for struggling companies.
Visit The Safer Food Group’s website for our budget beating course price reductions on Food Hygiene training