Posted: 03 / 03 / 2021

On Wednesday 3rd March, Rishi Sunak unveiled his Spring Budget 2021 stating “Our plan is working,” but warning that the UK’s economic recovery will “take a long time”.

In the announcement, he revealed details of a number of changes to the UK tax rates, as well as new measures to support businesses and individuals as industries look to get back on their feet in the wake of the Covid-19 pandemic.

Below are some of the key takeaways from Budget 2021, along with discussions around the impact of the announcements from our assembled experts for the day…



The extension of the furlough scheme until 30th September 2021.

The furlough scheme will be extended until the end of September, with the government paying 80% of salary, though employers will asked to put in 10% from July and 20% from August.



Further support announced for the self-employed.

Help for the self-employed will also be extended with changes meaning 600,000 more people will be eligible



A new government-backed loan scheme to replace bounce-back and other Coronavirus loans.

Bounce-back and other coronavirus loans for businesses will be replaced by a new recovery loan scheme 80% guaranteed by the government



A further business rates holiday until the end of June 2021.

The business rates holiday for retail, hospitality and leisure sector is extended to the end of June and until March 2022 they will still be discounted by up to two thirds



The reduced VAT rate to continue until the end of September 2021.

Reduced rate of 5% VAT for the hospitality and tourism sectors extended to the end of September, and will only go up to 12.5% after that, before returning to 20% next April



Stamp duty holiday on properties worth up to £500K will be extended until the end of June 2021.

The stamp duty holiday on properties worth up to £500,000 will be extended until the end of June and after that there will still be no duty on homes worth up to £250,000 for another three months. After that the threshold returns to the usual level of £125,000 from October



Personal income tax thresholds to be frozen until 2026.

Personal income tax thresholds to be frozen from next year until 2026 – at £12,570 for the basic rate and at £50,270 for the higher rate



Corporation tax to increase to 25% in April 2023.

Corporation tax to increase to 25% in April 2023 but remains at 19% for companies with profits under £50K



The biggest business tax cut in modern British history – capital expenditure super-deduction.

For the next two years, when companies invest in assets, they can have a super deduction of 130% of the value of the asset




For Budget 2021 updates & guidance on how it affects you and your business head to our Budget Hub.

Visit Budget Hub ➞