2021 Autumn Budget

Amidst a backdrop of rising inflation, an energy crisis and global uncertainty, we continue our recovery from the "worst economic shock ever seen" created by the COVID-19 pandemic.

Chancellor Rishi Sunak has reaffirmed his commitment to investing in our economic infrastructure, presenting his Autumn Budget to deliver 'a stronger economy for the British People'.

The key points of note have been included below and, as always, we will keep you up-to-date with further details as they are announced. For more detailed information, please click here to download our Budget Summary which goes beyond the key announcements and looks at how these changes could impact you, your business and your personal finances.

Key Announcements for businesses

  • The Chancellor reaffirmed the planned increase to Corporation Tax rates to 25% from April 2023, affecting companies with taxable profits in excess of £50,000.
  • The Government is reforming R&D tax reliefs to expand the scope of qualifying expenditure, with a focus towards companies undertaking domestic R&D, therefore supporting UK innovation. Later this autumn, the Government will release their plans to tackle abuse and improve compliance within the R&D tax remit.
  • The temporary increase to the Annual Investment Allowance to £1 million was due to reduce on 1 January 2022. Today it was announced that this will be extended until March 2023.

Don't forget - the 'Super Deduction' announced in the 2021 Spring Budget also remains a highly beneficial relief for anyone investing in plant and machinery. Please get in touch with us if you are planning on making any such investment and we will help you maximise the reliefs available.

Reforms to business tax rates

The Chancellor announced upcoming reforms for a fairer business tax rates system, including a 3-year revaluation process commencing from 2023. He also announced the implementation of two additional reliefs, as follows:

  • Investment relief

From April 2023, the aim of this will be to encourage businesses to invest in green technologies, with initiatives such as solar panels.

  • Improvements relief

For businesses making substantial improvements to their properties, from 2023 they will benefit from no change to their rates for 12 months after making the investment.

Extension to Capital Gains Tax (CGT) deadlines on property disposals

Previously if you were to dispose of a UK residential property that results in a Capital Gains Tax charge, you would be required to report this (and pay the tax) within 30 days of the transaction being completed.

For completions from today (27 October 2021), the reporting deadline will be extended to 60 days, giving those affected more time to produce accurate information and seek assistance from advisers in order to report this correctly.

Key changes affecting the Retail, Hospitality and Leisure sectors

  • Introducing a new, temporary business rates relief specifically for these sectors, effectively cutting their rates bill by 50%.
  • Tax relief on museums, galleries, theatres etc. that was originally due to end in 2022, has been extended until 2024.
  • No duty increase on beers, wines, ciders and spirits.

Minimum wage increase

In April 2022, the Government will increase the National Living Wage from £8.91 to £9.50 per hour - that's a rise of 6.6%. Young people and apprentices will also benefit from increases to the National Minimum Wage.

Changes to Universal Credit

If you receive financial support for housing costs, the current monthly work allowance is £293 (or £515 if you do not). This means for every £1 you earn in excess of these amounts, you lose 63 pence of your universal credit.

The Government reforms are reducing the severity of the tapering, so that for every £1 over these thresholds, you will instead lose 55 pence of your universal credit entitlement.

For households with children or adults with limited capacity to work, the work allowance will increase by £500 per year - therefore providing a benefit of £275 per year.

We are here to help...

We are here to help in any way we can - please speak to your usual Jerroms contact on 0121 693 5000 (Solihull Office), 01527 833124 (Bromsgrove Office) or 01675 466344 (Coleshill Office).

Get In Touch

Please get in touch if you want to talk more about how we can help you.
We offer an initial consultation free of charge which gives us the chance to meet and discuss your needs, with no obligation.

Accountants in Solihull

Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH

0121 693 5000

Accountants in Halesowen

West Point, Second Floor, Mucklow Office Park, Mucklow Hill, Halesowen, B62 8DY

01384 250202

Jerroms is a trading style of both Jerroms Business Solutions Limited 08923059 and Jerroms GCN Limited 08433008.
Registered office for each of these companies is: Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH