What does Sunak’s Budget mean for your business?

By DRN Solicitors

17 Mar 2021

calculator-820330_1920.jpg

The Government’s budget has recently been announced, with updates made to several aspects, including income and corporation tax, and an extension to the furlough scheme put into place. 

What does the new budget mean for you and your business?  

Extension to Furlough Scheme and Self-Employment Income Support Scheme 

The Furlough Scheme and the Self-Employment income support scheme have both been extended to September 2021. 

Furloughed employees will continue to receive 80% of their wages until the scheme ends, but as the scheme is gradually phased out towards the end of the year, employers will be required to begin making contributions of 10% in July, and 20% in August and September.

Restart Grants 

£5 billion has been assigned to new Restart Grants, which will provide a one-off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care, and gym businesses in England.  

Apprenticeship Hiring Incentive 

The apprenticeship hiring incentive in England has been extended to September 2021, offering an increase in payment of £3,000. 

Income Tax 

The Chancellor announced that no changes will be made to income tax rates or national insurance rates, whilst personal income tax allowance is set to be frozen at £12,570 from April 2022 to April 2026, with the threshold for higher rate income tax also frozen, being kept at £50,270 from 2022 to 2026. 

Corporation Tax 

We are set to see a corporation tax rise on company profits in April 2023, when it will increase from 19% to 25%. 

The rate is set to be kept at 19% for smaller companies with profits of less than £50,000, and will be tapered so that only businesses with profits exceeding £250,000 per year will be taxed at the 25% rate. 

The rules for carrying back losses will also change. Businesses can currently carry back losses for 12 months, but this will be extended to 36 months. 

Super-Deduction 

Set to start in April 2021, the new super-deduction will cut companies’ tax bill by 25p for every £1 they invest in new equipment. With companies able to deduct investment costs from tax bills, the taxable profits will be reduced by around 130%.

This move will be worth around £25 billion to UK companies over the two-year period the super-deduction will be in effect. 

VAT 

Hospitality businesses will benefit from a reduced VAT rate of 5%, which will be maintained until September. From September onwards, an interim 12.5% rate will apply for the following six months. 

Other budget announcements 

Stamp Duty Holiday

The stamp duty holiday that was first introduced in July 2020 in a bid to boost the UK property market will be extended to June 2021, with homebuyers relieved from paying stamp duty on all property purchases up to the value of £500,000. 

Mortgage Guarantee 

The new mortgage guarantee scheme will allow buyers to purchase a property with a small deposit of just 5%, guaranteeing a loan of up to 95% on properties valued up to £600,000. 

Looking for advice? 

DRN’s specialist HR and Employment Law team are dedicated to providing sound, reliable business advice that you can trust. For more information surrounding best business practices in the current climate, please contact a member of our team on 01282 433241. 

Latest news

1

UK's pioneering Combat Air Flying Demonstrator is revealed Flying Combat Air Demonstrator

UK's pioneering Combat Air Flying Demonstrator is revealed

17 Jul 2025

2

A fresh brew for The Printed Cup Company The Printed Cup Company

A fresh brew for The Printed Cup Company

17 Jul 2025

3

Joe Diston from Beever and Struthers appointed to new Global IFRS leader for HLB International Joe Diston

Joe Diston from Beever and Struthers appointed to new Global IFRS leader for HLB International

17 Jul 2025

4

Louise Leyland promoted to director role at PWA Planning Louise Leyland And Paul Walton

Louise Leyland promoted to director role at PWA Planning

16 Jul 2025

5

Muller UK and Ireland to invest an extra £45m into Skelmersdale site The Skelmersdale Muller site

Muller UK and Ireland to invest an extra £45m into Skelmersdale site

16 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Advantage: AI – A Workshop for Business Leaders – August 14th
Navy--Event Tile.png.png
LBV Hub Seminars
14 Aug 2025 - 14 Aug 2025

Advantage: AI – A Workshop for Business Leaders – August 14th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin