Following on from the Budget announcement yesterday from Rishi Sunak, the highlights and some of the key points are shown below..
The furlough scheme and self-employed income support has been extended.
- The furlough scheme will now run until the end of September – it had been due to close at the end of April.
- The Self-Employment Income Support Scheme (SEISS) will be extended to 600,000 people who were previously excluded. The fourth grant will be open to claim in April but no exact dates as of yet. A fifth grant for the self-employed has also been confirmed covering May, June and July.
The current stamp duty holiday (in England and NI) will be extended until the end of June.
- The £500,000 nil rate band had been due to end on 31st March, but will now continue until the end of June. After that, until September the nil rate band will be reduced to £250,000, before returning to the usual £125,000 after that.
Income tax, national insurance contributions and VAT won’t rise, but thresholds will be frozen from 2022 onwards – meaning in real terms many will pay more in tax from 2022 onwards.
- The Chancellor said the Government would deliver on its promise to increase the personal allowance – the rate over which people start paying tax – to £12,570 next year, but said it would then be kept at this rate until April 2026. The higher rate threshold will similarly be increased next year, to £50,270, but will then also be frozen until 2026.
The 5% reduced rate of VAT for the tourism and hospitality sector will be extended for six months.
- It will now last until the end of September, with an interim rate of 12.5% for another six months after that.
A new restart grant will start in April to help businesses.
- These will be available in England and will be up to £6,000 per premises for non-essential retail businesses and up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses.
A Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million.
- This will launch on 6 April and will be open to all businesses, including those who have already received support under the existing coronavirus guaranteed loan schemes.