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Budget economy

Budget 2021: Business tax summary


By extending existing support policies and throwing a blanket over any tinkering with thresholds and rates for the next few years, Budget 2021 lived up to its billing as the finale in the coronavirus Budget mini-series. 

3rd Mar 2021
Editor in Chief AccountingWEB
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A burst of investment initiatives shows how the Downing Street scriptwriters are already at work on their proposed sequel, “Building for our future”.

Key business tax measuresCovid support: Furlough extension takes centre stage

Chancellor Sunak extended the CJRS furlough scheme to 30 September 2021, but support will tail off after 30 June, writes Kate Upcraft. The eligibility of employees for the scheme has been amended to include, from 1 May 2021 onwards newly eligible employees who were employed on 2 March 2021, as long as a payment of earnings was reported on RTI between 20 March 2020 and 2 March 2021. Employers and payroll managers will be relieved that planned increases in the personal allowance to £12,570 and the 20% tax band will remain, but then be frozen until 5 April 2026.

Four new VAT rates to grapple with

The need to lessen the impact of Covid-19 on affected industries has tempted the Chancellor to create even more VAT bands in his 2021 Budget, writes Neil Warren. The temporary 5% rate will be maintained until 30 September 2021. It was due to revert to 20% from 1 April 2021. The industry will be pleased with the six-month extension of the 5% rate and the half-way house of 12.5% until we’re back to 20% as normal on 1 April 2022.

Business rates holiday extended until June

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