Recently we saw the Chancellor Rishi Sunak announce his Autumn 2021 Budget, which set out the government’s tax and spending plans for the upcoming year.

The Chancellor’s stated his plans were focused on the “Post-Covid” era. We have summarised the key points from the budget which will impact you and your business:

Business Tax:

• To assist the sectors which have been hit the most with the effects of COVID, a 50% business rates discount for companies in retail, hospitality and leisure will be available for 2022-23, up to a cap of £110,000 per business.
• Business rates improvement relief: From 2023, companies will be able to make property improvements to increase the rateable value and for 12 months pay no extra business rates.
• 100% business rate exemptions for onsite renewable energy generation and storage equipment, and a 100% relief for eligible heat networks.
• Annual investment allowance: £1m annual investment allowance has now been extended to April 2023.
• Property developers with a profit above £25m will incur a new 4% levy on profits to fund the removal of unsafe cladding.
• VAT rates remain unchanged.
• No further changes to Corporation Tax, other than the planned increased from April 2023.
• The incentive to hire an apprentice for employers of £3,000 has been extended until January 2022.

Research & Development:

• Cloud computing and data costs will be added to list of eligible expenditure for R&D tax relief.
• Rishi Sunak stated the investment in R&D “will help drive economic growth and create jobs for the future”.
• The R&D criteria will be amended to ensure that relief is only given for R&D activity undertaken in the UK.

Personal Tax:

• CGT Reporting: For disposals which complete on or after 27 October 2021, the reporting and payment deadline has now been extended from 30 days to 60 days after the completion date. All disposals prior to 27 October 2021 are still subject to the 30-day deadline.
• National Minimum Wage increased from 1 April 2022 – National Living Wage will increase from £8.91 to £9.50. For the full Minimum Wage and National Insurance increase breakdown, click here.
• Inline, with the introduction of the Health and Social Care Levy, we have seen an increase in national insurance rates and dividend tax rates by 1.25% from 6 April 2022. For the full breakdown, click here.
• The Universal Credit taper rate will be reduced by 8% to 55% by no later than 1 December.

For the full breakdown on the increase to Minimum Wage, National Insurance and Dividend Tax Rates, please click here.

If you need further information on anything which was included in the budget which will affect you and your business, please get in touch with us today on 01724 848343. We would be more than happy to help with any of your business queries.