Dishi Richi Announcement
Updated: Mar 17
Today, Wednesday, 3rd of March, Dishi Richi Sunak announced the spring budget, the most anticipated and important announcement by a Chancellor in living memory.
Richi said there is a 3 part plan from the Government:
They will continue doing whatever is necessary.
They will need to fix public finance.
They must begin by funding the future economy.
The OBR think the economy will be back to pre-covid levels by summer 2022 and grow by 4% this year and 7.3% in 2022.
What we have confirmed today is:
Support will continue for the self-employed.
The fourth grant will cover Feb to April at 80% of trading profits.
A FIFTH and final grant will be payable for the period May-July.
Claims for the fifth Grant can be made from late July.
Help will be provided to businesses most affected. If turnover has fallen by less than 30%, only 30% will be paid in this Grant. If the business turnover has fallen more than 30%, then the full 80% is payable.
Newly self-employed people can access the 4th AND 5th Grant provided that they have completed their 2020 return by midnight on the 2nd of March 2021.
£20 increase in UC will be continued for another 6 months - until September 2021.
Corporation tax will be split into different bands, like personal tax. In April 2023, a new higher rate Corporation Tax band will be introduced. This will be set at 25% for over £50,000 in profit. 70% of businesses won't be affected as the lower rate remains at 19% for small businesses. There will be a corporation tax taper between 19% and 25% for companies who have profits of 50k to 250k.
Business losses up to £2m can be carried back up to 3 years.
Landlords and House buyers
£500k nil rate band will end in June. £250k nil rate will continue until the end of September. Lenders will have government backing to loan 95% mortgages.
Support for the employed
The furlough scheme will be extended to the end of September at 80%. For employed people, nothing will change. The national living wage will be increased to £8.91 too.
Business Rates Holiday
No business rates until the end of June. The last part of the fiscal year rates will be discounted by 2/3.
Up to £6000 per retail premises, and up to £18,000 for gyms and other businesses.
Recovery Loan Scheme
£25k to £1m Loans guaranteed by the Government at 80%.
5% reduced VAT rate will continue, and an interim 12.5% rate will be applied from October.
For the next 2 years, 130% of the cost of an 'investment' is allowed as an allowable expense. More details to come on this shortly!
Alcohol Duty Frozen
Fuel Duty Frozen
A Green Bank has been set up to support Green Infrastructure and Investment
Help to Grow Management: UK wide small and medium businesses will get 90% government support in executive development.
Help to Grow Digital: Help for small businesses up to £5000 on productivity software. Register here - www.gov.uk/helptogrow
Visa Reforms: points-based for people entering the UK.
Pension Reforms: relaxing of pension rules to allow investment in other forms.
Freeports will be introduced in 8 regions across the country.
The amount we borrowed this year was £355 Billion, comparable only to times of world war. There will be no tax raises, but there will be a tax freeze until April 2026. A new 100 million pound Covid fraud fund will be put aside for 1000 HMRC staff.
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