The UK Budget in March 2021 from a Positive Perspective!
Apart from the obvious lack of financial support for the NHS and key workers. This Budget is the best I have seen for business in years.
Firstly, all current business support has been extended, phew. The next round of self-employment support will be tapered, signalling this support is coming to an end.
Even if you don’t have the money yourself to take advantage of the Super Deduction. This gives you a 130% tax relief, on a wide variety of capital investments. This starts from 1st April 2021 and lasts for 2 years. Some of your customers will have the money to invest and grow their business, which could support you – either directly if you sell to businesses, or indirectly if you sell to the public. A similar scenario applies to the extended Apprenticeship Scheme.
Help to Grow
How much do you know about running a business? The Help to Grow scheme is giving small and medium sized businesses the opportunity to learn from our world leading Business Schools. Mixing our creative and innovation talents with leadership, management and digital skills. This may cause further success, both nationally and internationally! This scheme is for businesses with 5+ employees – there are already many free courses at local business hubs and Universities for the self-employed. What do you need? Management, digital, or financial skills? If you don’t want to take a course, book a 121 session.
Yes, even for me there are controversies. Will creating Free Ports around the country, encourage manufacturing industries with their support structures and smooth the import/export process for everyone? Or become dodgy tax havens. My crystal ball is a little cloudy. If you live near a free port, or your services match – check it out.
We knew there would be tax increases to pay for coronavirus. Unless you have a few hundred billion pounds you would like to contribute? We will all be paying a little more tax for the next few years. Keeping the tax thresholds the same ‘feels like’ a gentle way to do it, after all no one cheers with delight when they are increased!
Focusing on the tax free thresholds reassures me, they are unlikely to increase the tax rate imminently. They declared Corporation Tax would increase from 19% to 25% in 2023, for businesses earning over £50K. That’s 25% to the Government and 75% to you.
Was it a perfect Budget? It never is. I will be doing my best to encourage my clients to grow their businesses, in a way that suits them, with or without the support offered. Here’s the BBC’s Budget at a Glance. which includes restart grants and industry specific information.
And lastly, for all those people who spent their savings, living in unsatisfactory rental accommodation during the last year, there is a ray of hope. The Government is now supporting 95% mortgages for everyone, whatever the type of house – even self-employed can now dream of buying their own cottage in the country.
By Jenny Bracelin, Business Mentor and Money Coach from I Explain Money