Autumn Budget 2021 News

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Autumn Budget 2021 News

By Stacey McVeighty | Thursday, 28th October 2021

So, I was joking with the guys in the office and said "I hope Sunak turns up to the Budget and says he has nothing to report"... anyway, turns out I wasn't far off the mark. There was a lot of talking, some "hilarious" jokes and quite a lot of talk about alcohol, but I don't have an awful lot to report back about business and taxes. 

Here is a very brief Budget summary: 

1. The corporation tax rate increase is still going ahead in 2023.

2. The £1m annual investment allowance has been extended to March 2023.

3. There are going to be some substantial changes to Research & Development relief. From 2023 cloud computing and data costs will be an allowable expense and only expenditure incurred in the UK will be eligible for relief. More info to follow. 

4. There are going to be a number of changes to business rates. This will benefit hospitality, leisure and anyone making "green" improvements to their property. However, from 2023 business rate valuations will take place every 3 years, rather than 5.

5. More good news for hospitality, with a new 5% cut in draft duty for kegged beer & cider. As well as an overhauled system for alcohol duties based around the alcohol strength. 

6. Fuel duty remains frozen. I don't actually recall the last time I didn't write that sentence in one of these budget updates. Of course this doesn't really tie in with the green targets and initiatives that we are supposed to be aiming for.  

7. The Universal Credit taper rate will drop from 63% to 55%, by no later than 1st December 2021.

8. Finally, as we already know, the National Living Wage is to increase to £9.50 from April 2022. I have seen a lot of comments saying that because it is called the NLW and not the National Minimum Wage it is not mandatory and is just a suggestion. This is absolutely not true. The NLW is a legal requirement and HMRC are very keen to name and shame people who are not paying it, either on purpose or by accident, as well as take them to court.

And that's your lot, for now. It may be some more detail crawls out of the woodwork, but I struggled to find you those 8 points if I'm honest. 

 

Photo by Jon Parry on Unsplash