Did the Autumn Budget meet your expectations as a budget for growth that will lead to higher wages, higher skills, and rising productivity?
For a summary of the main announcements from the Chancellor’s 2021 Budget visit our resource centre and download our Autumn Budget guide. It provides a useful summary of all the main announcements as well as the less publicised changes that are most likely to affect your business or personal finances. And it’s full of tax and financial planning tips that you may also find useful.
The guide provides the latest on Making Tax Digital (MTD) and some key dates on adoption and compliance, which will be of particular interest to those who are self-employed. If your accounting period is not aligned to the tax year, you should be aware of the transition to the new rules that take effect from 6 April 2024.
This change may impact when business profits are taxed which might affect cashflow, although adjustments in 2023/24 are designed to ease the transition.
From 1st April 2023, corporation tax rates are to remain at 19% for companies with profits up to £50,000 and rise to 25% for companies with profits over £250,000. Again, there will be transitional rates for those between £50,000 and £250,000.
Businesses planning to invest in plant and machinery will welcome the announcement that the Annual Investment Allowance (AIA), which was temporarily increased from £200,000 to £1 million in 2019, will remain at £1,000,000 until 31 March 2023. This provides 100% tax relief on qualifying expenditure.
The Chancellor also extended the Recovery Loan Scheme until June 2023 to give businesses more time to bounce back after the pandemic. Businesses can apply for a loan of up to £2 million, which are 70 per cent backed by the government (reduced from 80 per cent originally).
Visit our resource centre for a full rundown of the Autumn Budget. If you would like to discuss how the budget announcements may impact on you or your business, please get in touch.