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The Budget 2021: At a glance guide

Apprenticeships: An additional £126 million in England for work placements and training for 16-24 year olds in the 2021/22 academic year. Employers who provide trainees with work experience will continue to be funded at a rate of £1,000 per trainee.  Those who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire, in addition to the existing £1,000 payment.

Furlough goes further: The Coronavirus Job Retention Scheme will now run until the end of September 2021. Employees will receive 80% of their current salary for any hours that they do not work. Employers will may NIC and pension contributions in April, May and June, and 10% towards the cost of unworked hours of 10% in July, 20% in August and 20% in September.

Frozen fuel: Fuel duty will be frozen in 2021-22. HGV VED will also be frozen for 2021-2022 and the HGV Levy will be suspended for another 12 months until August 2022. The government will freeze the Aggregates Levy rate for 2021-22 but intends to return to index-linking in future.

Infrastructure: A Modern Methods of Construction Taskforce, will accelerate the delivery of MMC homes in the UK. And a new National Infrastructure Commission (NIC) study on towns and regeneration, will consider how to maximise the benefits of infrastructure policy and investment for towns in England.

Loan Recovery: From 6 April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million. The scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes. As with other business support schemes, the government will set out steps for closing this scheme in due course.

No contact: Contactless card payments will now have limits of £100 (single transaction) and £300 (consecutive transactions) without the need for a chip and pin number to be input. This will ne implemented later in the year. , without the need for customers to input their chip and pin. The government looks forward to the banking industry implementing the new limits later this year.

Sickness support: The temporary Covid measure to account for higher levels of staff sickness will remain for the time being. This allows small and medium-sized employers  to reclaim up to two weeks of eligible Statutory Sick Pay costs per employee.

Skillset: A new UK-wide management programme will combine a national curriculum delivered through business schools with practical case studies and mentoring from experienced business professionals. Similarly, a new UK-wide scheme will be launched in the autumn to help 100,000 SMEs save time and money by adopting productivity-enhancing software, transforming the way they do business. This will combine a voucher covering up to half of the costs of approved software up to a maximum of £5,000, and free impartial advice, delivered through an online platform

Super-deduction: Until 31 March 2023, companies investing in qualifying new plant and machinery assets can get a 130% first-year capital allowance, cutting their tax bill by up to 25p for every £1 they invest.

Taxation: Corporation tax rises from 2023 to 25% on profits over £250,000. The rate for small profits under £50,000 stays at 19% and businesses with profits under £250,000 get relief so that they pay less than the main rate. The Diverted Profits Tax rate will rise to 31% from April 2023. The individual personal tax allowances remain frozen at their current levels.

VAT deferred: Businesses that deferred their VAT returns can now pay that deferred VAT in up to eleven equal payments from March 2021, rather than one larger payment as originally announced.

 

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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