Autumn Budget 2021 and your small business

UK Business Forums described Wednesday’s Autumn Budget as a “non-event” for small businesses, which offered little reassurance of a robust plan for their economic recovery.

Here is a breakdown from the Autumn budget 2021:

  • Business rates cut by 50% for retail, leisure, and hospitality for one year
  • Green business rates incentive
  • R&D spending pledge
  • Economic rebound
  • National Living Wage increase
  • Annual Investment Allowance extended
  • National Insurance to rise

For the full story, click here.

We have followed the Budget closely to give you a breakdown of everything relevant to you. Click here to find out more.

National Living Wage is set to rise to £9.50 an hour

Workers on minimum wage are set to get a pay boost from April 2022, the rate for those aged over 23 rising to £9.50 an hour from £8.91.

The announcement will take place at this week’s budget meeting.

Minimum wage increases from April 1st 2022:

  • National Living Wage for over-23s: From £8.91 to £9.50 an hour
  • National Minimum Wage for those aged 21-22: From £8.36 to £9.18 an hour
  • National Minimum Wage for 18 to 20: From £6.56 to £6.83 an hour
  • National Minimum Wage for under-18s: From £4.62 to £4.81 an hour
  • The Apprentice Rate: From £4.30 to £4.81 an hour

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Recovery loan scheme to be extended for six months

The Chancellor announced the extension of the Recovery Loan Scheme. This scheme was launched in April to help soften the blow from removing The Bounce Back Loan Scheme. The extension will be six months, ending on the 30th of June 2022.

Because of these stricter financial terms, there has been less take-up of the scheme. Many applicants have been denied a loan because their companies’ turnover value wasn’t high enough, because of their credit rating because they already had a Bounce Back Loan.

For more information, check out your bank website or click here. 

CGT reporting deadline for property sales extended

An increased deadline for UK residents to report and pay capital gains tax on the sale of UK residential property was announced in the Autumn Budget 2020. Giving residents 60 days after completion, rather than the original 30 days.

This change will come into effect immediately and applies to completions made on or after the 27th of October 2021.

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Budget 2021: Millions will be worse off in 2022, says IFS

According to an economic think tank, millions of people are set to be worse off next year amid spiralling costs and tax rises.

Paul Johnson, director of the IFS, said that “millions will be worse off in the short term” as a result of soaring costs.

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