Budget 2021 - Wednesday 27 October 2021

 

On Wednesday 27 October, the Chancellor presented his second Budget of the year along with a response to the latest economic forecasts and a Comprehensive Spending Review.

We have detailed below a succinct summary of the key changes that will impact our SME client base:

Businesses:

  • Business rates – temporary business rates reliefs were announced for 2022/23, a freeze in the business rates multiplier and a 50% discount for the Retail, Hospitality and Leisure sectors

  • R & D tax reliefs – will be reformed from April 2023 to expand qualifying expenditure to include data and cloud computing costs to encourage innovation in the UK

Individuals:

  • Dividend tax rate – increases by 1.25% from April 2022 to 8.75%, 33.75% and 39.35%

  • Making tax digital – delayed until April 2024 for Income Tax Self Assessment for self employed

  • CGT reporting – following the sale of UK residential property had been extended from 30 days to 60 days

Employers:

  • National living wage – for staff over the age of 23 this has been increased to £9.50 per hour from 1 April 2022

  • National Insurance – the 1.25% increase will take effect from 6 April 2022 for employees’ and employers

If you require any further information or explanations please feel free to contact one of the BSN team

Pippa Hawkes