ImagesMagUK_April_2021

www.images-magazine.com 26 images APRIL 2021 INDUSTRY ISSUES Budget 2021 summary Super-deduction tax break for those investing in equipment, plus new business grants Chancellor Rishi Sunak announced a number of new measures in the government’s 2021 Budget in March to help support the UK’s economic recovery from the coronavirus pandemic. Super-deduction to cut business tax bill for investing in new equipment Beginning April 2021, a new super- deduction will cut companies’ tax bill by 25p for every pound they invest in new equipment, which means they can reduce their taxable profits by 130% of the cost – this is worth £25 billion to companies over the two-year period the super-deduction will be in full effect. Coronavirus Job Retention Scheme extended The Coronavirus Job Retention Scheme has been extended until the end of September 2021. Under the scheme, furloughed employees will continue to receive 80% of their wages until the end of September, although employers will now be expected to pay 10% of their wages in July, then 20% in August and September. Self-Employment Income Support Scheme extended The Self-Employment Income Support Scheme (SEISS) has been extended, with a fourth grant to cover February to April, which is worth 80% of average trading profits up to £7,500. Cash grants under the SEISS will also now be available to those who became self-employed during 2019-2020. A fifth and final grant will also be available covering May to September, which those eligible will be able to claim from late July. Business rates holiday extended The business rates holiday in England has been extended until June 2021. The exemption means retail companies in England will pay no business rates for three months from 1 April. New Recovery Loan Scheme As the government-backed Bounce Back Loan and Coronavirus Business Interruption Loan Scheme closed at the end of March, the UK government has introduced a new Recovery Loan Scheme that will enable eligible companies to access loans and other kinds of finance of up to £10 million per business. The scheme launches on 6 April and will be open until 31 December 2021. £5bn Restart Grant scheme for businesses A £5 billion Restart Grant scheme of up to £6,000 per premises for non- essential retail businesses has been launched to help businesses plan ahead and safely relaunch trading once the lockdown ends. The government is also providing all local authorities in England with an additional £425 million of discretionary business grant funding. An additional £2.4 billion will also be provided to the devolved administrations from 2021-22, with the Scottish Government receiving £1.2 billion, while the Welsh Government will receive £740 million and the Northern Ireland Executive will receive £410 million. Help to Grow scheme A new ‘Help to Grow’ scheme will also support up to 130,000 small and medium-sized businesses across the UK by providing the digital and management tools needed to innovate, grow and help drive recovery. Extra funding for apprenticeships and traineeships in England The government is providing an additional £126 million in England for 40,000 more work placements and training for 16-24 year olds in the 2021/22 academic year. Employers will continue to be funded at a rate of £1,000 per trainee for all new 16 to 18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan. There is also an extension of the apprenticeship hiring incentive in England to September 2021; employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will also now receive £3,000 per new hire (this is on top of the £1,000 above). A £7 million fund will also be introduced from July 2021 to help employers in England set up and expand ‘flexi-job’ apprenticeships, which will enable apprentices to work with a number of employers in one sector. National Living Wage & Statutory Sick Pay Rebate Scheme The National Living Wage will be increased to £8.91 from April 2021. Under the current Statutory Sick Pay Rebate Scheme, small and medium-sized business employers in the UK can continue to reclaim up to two weeks of eligible, coronavirus- related Statutory Sick Pay costs per employee from the government. Corporation tax to increase in 2023 In April 2023, the rate of corporation tax will increase to 25%. The rate will be tapered so that only businesses with profits of more than £250,000 will be taxed at the full 25% rate, while companies with profits of less than £50,000 will remain at 19%. Full details of the 2021 Budget can be found at imagesmag.uk/2021-Budget. imagesmag.uk/2021-Spring-Budget Rishi Sunak’s Coronavirus Job Retention Scheme has been extended until the end of September 2021 [Image courtesy of HM Treasury] IS