Budget Report 2021

This report, which was written immediately after the Chancellor of the Exchequer delivered his Budget Speech, is intended to provide an overview of the latest announcements and recent measures most likely to affect you or your business. Chancellor Rishi Sunak announced the 2021 Budget following a prolonged period of economic hardship caused by the coronavirus (COVID-19) pan… Continue Reading

Budget Report 2021: Other Matters

Land and buildings transaction taxes

Land and buildings transaction taxes are devolved to Scotland (Land and Buildings Transaction Tax) and Wales (Land Transaction Tax). Stamp Duty Land Tax (SDLT) applies to transactions in England and Northern Ireland. All these taxes have had a temporary increase in the nil rate threshold for residential properties. The thresholds were se… Continue Reading

Budget Report 2021: Tax and Travel

Mileage rates

Changes to the HMRC business mileage rates are announced from time to time. The fuel only advisory rates below relate to company cars only and apply from 1 March 2021. For those using their own vehicle the following mileage allowance payments apply.

Car benefits

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 20… Continue Reading

Budget Report 2021: Income Tax and Personal Savings

The Chancellor announced the following income tax rates and allowances.

Income tax rates and bands

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

Savings income

A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.

Dividend income

Personal a

… Continue Reading

Budget Report 2021: Personal Tax

Universal Credit

Universal Credit is a single payment that is made up of different amounts depending on an individual’s circumstances. There is no entitlement if an individual’s capital is worth more than £16,000. Shortly after the 2020 Budget the Chancellor announced an increase in the Universal Credit standard allowance by £20 per week for one year. The governm… Continue Reading

Budget Report 2021: National Insurance

2021/22 Class 1 (employed) rates

Entitlement to contribution-based benefits for employees retained for earnings between £120 and £184 per week.
The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £967 per week.  … Continue Reading

Budget Report 2021: Employment Taxes

The Coronavirus Job Retention Scheme (JRS)

The current JRS allows an employer to place an employee on furlough and apply for a grant to cover wage costs for the time an employee is on furlough. The employer:

• can claim 80% of ‘usual salary’ for hours not worked, up to a maximum of £2,500 per employee (pro-rated for hours not worked) per month
• needs to fund employer Nationa

… Continue Reading

Budget Report 2021: Duties

Alcohol and tobacco duties

The duty rates are frozen for beer, spirits, wine and made-wine, still and sparkling cider and perry. The duty rate on all tobacco products has also been frozen.

Fuel duty

Fuel duty will be frozen for the 2021/22 tax year.… Continue Reading

Budget Report 2021: Capital Taxes

Capital gains tax (CGT) rates

No changes to the current rates of CGT have been announced at Budget 2021. This means that the rate remains at 10%, to the extent that any income tax basic rate band is available, and 20% thereafter. Higher rates of 18% and 28% apply for certain gains; mainly chargeable gains on residential properties with the exception of any element that qualifies for P… Continue Reading

Budget Report 2021: Minimum Wage

Increases in the National Minimum Wage and National Living Wage rates occur in April each year.   … Continue Reading