SMART Budget Summary – More Support For Businesses Announced

Chris Lunn • Mar 05, 2021

The budget yesterday seemed relatively well received ahead of the big reopening of many salons and clinics in April. Here are the key highlights we felt are most relevant;

NEW Recovery Loan Scheme – From 6th April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million. This will be available to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.
NEW Restart Grants to Help Businesses Reopen – Non-essential retail businesses will receive grants up to £6,000 per premises. Hospitality and leisure (which includes personal care and gyms) can each receive grants of up-to £18,000 (where they are impacted by restrictions and may not open until later this year).
Furlough – extended to the end of September 2021
Workers can continuing to receive 80% of their current salary for hours they don’t work due to being furloughed. This will come in the form of a grant to employers who will make a contribution of 10% of the worker’s salary for unworked hours in July and 20% contribution in August and September. The £2,500 monthly limit for the grant remains
Coronavirus Business Interruption Loan Scheme (CBILS) are closing as planned this is closing on 31st March 2021
Minimum wage – increasing to £8.91 an hour from April 2021
Corporation Tax – will remain at 19% for business profits up-to £50,000. There will be a tapered increase to 25% for profits over £250,000 from April 2023.
VAT Threshold – This remains at £85,000 until 2024
Business Investment Tax Relief & Loss Relief – A new “super-deduction” tax relief was announced. The normal loss carry-back rules extended from one year to three years for losses of up to £2 million.
Rates Relief – Eligible retail, hospitality and leisure properties in England will continue to receive 100% business rates relief from 1st April 2021 to 30th June 2021. 66% business rates relief will be applied for the period from 1st July 2021 to 31st March 2022, capped at £2 million per business for properties that were required to be closed on 5th January 2021, or £105,000 per business for other eligible properties.
Support for the self-employed – This has been extended until September
Credit updates – £20 weekly uplift in Universal Credit worth £1,000 a year to be extended for another six months. Working Tax Credit claimants will get £500 one-off payment
Tax-Free Allowance – Basic allowance will increase to £12,570 from April 2021, and then it will stay at that level until 2026. The Higher Rate threshold will increase to £50,270 and will then also be frozen to 2026.
National Insurance – In the 2021/22 tax year the new National Insurance thresholds are: Primary Threshold/Lower Profits Limit increases to £9,568, Upper Earnings Limit (UEL)/Upper Profits Limit increases to £50,270, No changes were announced to the rates of Income Tax or National Insurance

We hope that the news of further grants and on-going support via schemes such as Furlough and Rates relief, this is positive news ahead of the re-opening. With further discretionary grants available from local councils, the key is having a strong business plan for when you open your doors.

If you’re looking at ways to maximise your profits, our SMART Consultants are available to show you how our range of products can completely transform your business. Offer more treatments for a higher price, taking less time. That’s SMART thinking!

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