Rishi Sunak announced the 2021 Budget today, 3 March 2021. Here's a summary of what businesses should know;
Furlough
The Furlough scheme has been extended to the end of September 2021.
The Government will continue paying 80% of an employee's wages for unworked hours but will ask employers to contribute 10% of earnings in July 2021 and 20% of earnings in August and September 2021.
Apprenticeships
The financial incentive scheme for apprenticeships has been extended until September 2021. The payments an employer will receive for each new apprentice hired will increase to £3,000, regardless of the apprentice's age.
Portable apprenticeships will also be introduced in July 2021 which allow apprentices to work on projects across different employers.
Tax Freeze
Tax-free personal allowance will be frozen at £12,570 from April 2021 to 2026
The higher rate income tax threshold will also be frozen at £50,270 from April 2021 to 2026.
Corporation tax Increase
This is set to rise to 25% on company profits above £250,000 in April 2023. The rate for smaller businesses with profits of less than £50,000 will be kept at 19%.
£126 million budget for traineeships
This is aimed at high quality work placements and training for those aged 16-24 during the next 2021/2022 academic year. Employers who provide work experience will receive £1,000 per trainee.
Don't forget
National Minimum Wage is set to increase from 1 April 2021. The new rates will be:
23 & over: £8.91
21 to 22: £8.36
18 to 20: £6.56
Under 18: £4.62
Apprentice: £4.30
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