The Budget yesterday was full of announcements and there was a lot to take in.
The furlough scheme was extended and Restart Grants announced for retail businesses as well as hospitality, leisure and personal care businesses.
Although the self employed support scheme was extended to include those newly self-employed who filed a 19/20 tax return, there are still large groups of people who are not able to benefit from the scheme, and there was no help announced for limited company directors who pay themselves predominantly in dividends.
Freezing the personal allowances until 2025/26 will bring many more people into the tax paying regime over time, and more people will start to pay tax at the higher rate of 40%.
The hike in corporation tax to 25% from 1 April 2023 will hit companies with profits over £250,000. The rate remains at 19% for small companies with profits under £50,000, and companies with profits in between the 2 thresholds will gain marginal relief so will end up with a tax rate somewhere in between 19% and 25%.
The temporary extension for loss relief may be a slightly technical point but means that for businesses that have made a loss, there is more scope to get a tax rebate on tax paid in the past.
So in conclusion – a real mixed bag!
For a detailed summary of what was announced please read my Budget report here:
As ever if you would like more detailed advice on any of the issues raised in the Budget then please do get in touch with Rosie Forsyth.