Autumn Budget Update for SME's 2021
The latest Autumn budget has recently been announced with much speculation about what may be included in the brand new budget.
We have summarised the most important parts of the budget that may affect SME’s
Changes in the budget that affect SME's
50% cut to business rates helps boost the high street
In an attempt to ”create stronger high streets” Chancellor Rishi Sunak has announced a 50% discount on business rates for the retail, hospitality and leisure sectors in England. This means that for the next financial year, these businesses will be able to claim a 50% reduction in 2022-2023 (up to a maximum of £110,000).
There will be more frequent valuations (1 every 3 years)
Business Rate Improvement Relief, businesses will be able to make ”qualifying” property improvements and pay no additional business rates for 12 months. This was set out in the hopes to encourage business owners to adopt green technology such as solar panels.
The national minimum wage is changing
The national minimum wage will increase from £8.91 to £9.50 per hour for over 23-year-olds from the 1st of April 2022.
Moreover, the rate for the national minimum wage for individuals aged 21-22 will also be increased from £8.36 to £9.18 per hour.
Apprentices (aged 16 and over and not in full time education) will also see an increase from £4.81 to £4.30 per hour.
National Insurance increase
One of the biggest announcements in the Autumn Budget is the increase of National Insurance rates.
The Health & Social Care Levy will be initially introduced as an increase of 1.25% for the April 2022/23 tax year. Thereafter, from April 2023, the National Insurance rate will revert back to its previous rate, and there will be a separate charge of 1.25% called the Health & Social Care Levy.
Fuel duty rise is cancelled
Business owners who drive for their business will be pleased to hear that the fuel duty rise has been frozen for another year.
Fuel duty will remain frozen at 57.95 pence per litre for 2022-2023 (UK wide)
Recovery loan is extended for 6 months
Struggling business owners will be relieved to hear that the Recovery Loan Scheme has been extended for 6-months until the 30th of June 2022.
Businesses can apply for a loan of up to £2 million. Loans will now be 70% backed by the government.
What are your thoughts on the Autumn Budget 2021? Let us know by commenting/contacting us