Today’s Spring Budget has seen some key announcements affecting businesses across the UK. The economy is expected to grow 4% this year and return to pre-Covid levels by mid 2022. But how will Rishi Sunak’s budget affect your business?
- The furlough scheme has succeeded in limiting job losses and will be extended until the end of September. Employers should note that you must pay 10% towards the hours your staff do not work in July, increasing to 20% in August and September, as the economy reopens.
- The 5% reduced rate of VAT for tourism and hospitality will be extended for six months to the end of September.
- The 100% business rates holiday will continue from April until June.
- The government will invest scientific sector with new “help to grow” schemes which will support management training and digital skills.
Corporation tax will be increased from 19% to 25% from 2023 and will work on the following basis:
- Businesses with profits of £50,000 or less will continue to be taxed at 19%
- A tapered rate will also be introduced for profits above £50,000 – details to be announced
- Businesses with profits of £250,000 or greater will be taxed at the full 25% rate
We can help your business grow with our REVIVAL plan. We offer a FREE one-hour strategy session to understand your business and challenges, before presenting you with a tailored plan of action.
Business Garage provide professional, reliable support with financial management, bookkeeping, payroll, HR consultancy and HR advice, and business strategy. Contact us on [email protected] to arrange a free consultation for your business.