Insights

Budget takeaways 2021

04 / 03 / 2021

On Wednesday 3rd March, the Chancellor, Rishi Sunak, delivered his first budget since the pandemic was declared and has promised to do "whatever it takes" to support people and business and begin the work of "building the future economy". With a continued focus on environmental investments and decarbonisation, here’s an overview of the key takeaways.

Responding to: The Budget 2021

Join our live webinar on 18th March, where our consultancy experts will provide you with a detailed analysis of what The Budget means for our industry. Register now to secure your space.

Decarbonisation

Hydrogen hub in Holyhead
£4.8 million to support the development of a hydrogen hub which will pilot the creation of hydrogen from renewable energy and its use as a zero-emission fuel in HGVs

0% tax for EV vans
As previously announced, from April 2021, the Government will apply a 0% rate of tax for zero-emission vans within the van benefit charge

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Energy innovation
The launch of a £20 million programme to support the development of floating offshore wind technology across the UK

New UK Infrastructure Bank
Located in Leeds with £12 billion of equity and debt capital to finance local authority and private sector projects

Company car tax rates
No announcements or changes have been made to the previously released tax rates being known until 2024/25, which freezes rates for 2 years from April 2023 incentivising the transition to EV

Tax and fuel duty

Corporation Tax
From April 2023, the rate of Corporation Tax paid on company profits will increase from 19% to 25% for companies with profits over £50,000. There will be relief for businesses with profits under £250,000

Vehicle Excise Duty (VED)
The Government will increase VED rates for cars, vans and motorcycles in line with the Retail Prices Index from 1 April 2021

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Fuel duty
Frozen for the eleventh year running. Future fuel duty rates will be considered in the context of the UK’s commitment to reach net-zero emissions by 2050

Company vehicles
From 6 April 2021, fuel benefit charges and the van benefit charge will increase in line with the Consumer Prices Index

Commercial vehicles

HGV and Road User Levy
To support the haulage sector, the Government will once again freeze HGV VED for 2021/22 and will suspend the HGV Road User Levy for another 12 months from August 2021

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Business

VAT reduction
For the UK’s tourism and hospitality sector of 5% has been extended to 30th September 2021 with a low rate of 12.5% for a further 6 months after this for the retail sector

Help to Grow scheme
Offering 30,000 SME managers and 100,000 SMEs an upskill programme and help to adopt productivity-enhancing software

Business rates relief
For eligible retail, hospitality and leisure properties will be at 100% from 1st April 2021 to 30th June 2021 followed by 66% from 1st July 2021 to 31st March 2022

Super-deduction capital allowance
130% in the first-year for qualifying plant and machinery assets and a 50% first-year allowance for qualifying special rate assets

Other announcements

8 new Freeports
To be created in the UK to make the most of global opportunities after EU exit

Single contactless payment card limit to increase
The limit will now be £100 with cumulative contactless payments up to £300

Companies will receive £3,000 for each new apprentice hired between the 1st April to 30th September 2021 and an additional £126 million will be provided for traineeships

Personal Allowance
This will rise as planned to £12,570 from April 2021 until April 2026. Higher rate threshold (HRT) will rise as planned to £50,270 from April 2021 until April 2026

Temporary Stamp Duty Land Tax
The cut has been extended to 30th June 2021 and mortgage guarantee scheme to help first time buyers from April 2021 with a deposit of just 5% on homes with a value up to £600,000

An increase in National Living Wage
From April 2021 it will increase to £8.91 for ages 23 and over

NIC thresholds
As previously announced, in 2021/22 NICs thresholds will rise to £9,568 and the Upper Earnings Limit to £50,270 and remain aligned with the HRT until April 2026

Responding to: The Budget 2021

Join our live webinar on 18th March, where our consultancy experts will provide you with a detailed analysis of what The Budget means for our industry. Register now to secure your space.