The Chancellor Rishi Sunak delivered his budget on 3 March 2021 setting out the road to recovery for the UK post COVID-19.
The budget included a number of announcements of additional support including an extension to furlough, further grants and an extension to the reduced VAT rate for hospitality and tourism businesses to name a few.
The Chancellor also wanted to level with the British people of the scale of borrowing which has been required to finance the support during the COVID-19 period and that this would be required to be repaid.
The budget announced no increases to Income Tax, National Insurance and VAT rates however a significant increase in Corporation Tax from April 2023 to 25%. This was however balanced against tax incentives for businesses to invest. A new Super Deduction was announced for businesses and an extension to loss carry back rules.
The personal allowance the amount individuals can receive before paying tax and the higher rate threshold will be frozen from April 2021 to April 2026. This will effectively mean individuals are paying more tax from April 2021 when you consider the impact of inflation over the next 5 years.
A summary report of the budget and what it means for you can be downloaded at Budget Report 2021.