What can get an accountant more excited than a tax deduction? A super-deduction!
As expected, Coronavirus still loomed over the Budget – there was more help for businesses and employees over the coming months….but a tax bill to be paid in the future.
For businesses in Liverpool City Region, there is potentially more good news with the creation of the Freeports, which give tax breaks and should attract investment. Of course, Liverpool was a Freeport until 9 years ago but this does now cover the City Region.
So, what were the key points for business owners?
As a business owner, the good bits included:
- Extension to Furlough and Self-Employed Grants to September 2021, with more newly self-employed people now eligible
- Additional support for retail/hospitality through grants and extension to the reduced VAT rates and Business Rates holidays
- A “super-deduction” to reduce tax on qualifying capital expenditure
- The creation of the Freeports
- Extension of the Government paying Statutory Sick Pay for 14 days of isolation due to coronavirus
- Extension (and rebranding) of the Coronavirus loan schemes to December 2021
- A sigh of relief that Entrepreneurs Relief was untouched
- Cost of a beer stays the same!
But the bad bits include:
- The increase in headline Corporation Tax to 25% from April 2023, although the rate will remain at 19% for businesses with profits below £50k. [As an accountant, this brings back the dreaded Marginal Relief calculation.]
- Freezing personal tax allowances and the higher-rate threshold for 5 years
Personally, I’m also quite excited about the Help To Grow scheme with 50% discount on some software (including accounting software!) and also management training. I have already registered here.
There’s a lot to take in, so you can download our handy summary below.
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