Page 18 - BOSS Today Issue 51

BOSS Today #51

VAT deferral Personal Allowance and higher in partnership with industry, the
Any business that took advantage of rate threshold (HRT) programme will combine a national
the original VAT deferral on VAT returns The income tax Personal Allowance will curriculum delivered through business
from 20 March through to the end of rise with CPI as planned to £12,570 from schools with practical case studies and
June 2020 can now opt to use the VAT April 2021 but will remain at this level mentoring from experienced business
Deferral New Payment Scheme to pay until April 2026. The high rate threshold professionals. Over 12 weeks, and
that deferred VAT in up to eleven equal will rise as planned to £50,270 from April 90% subsidised by government, this
payments from March 2021, rather than 2021 and will remain at this level until programme will equip SMEs with the tools
one larger payment due by 31 March April 2026. to help their businesses grow and thrive.
2021, as originally announced.
National Insurance Help to Grow: Digital
Trade credit reinsurance scheme Contributions (NICs) thresholds Launching in the autumn, this scheme will
Under this scheme the majority of trade As previously announced, and legislated help 100,000 SMEs to adopt productivity-
credit insurance coverage has been held for in February 2021, NICs thresholds enhancing software. This will combine a
across the market. Up to £190 billion of will rise with CPI in 2021-22, bringing the voucher covering up to half of the costs
cover on around half a million businesses NICs Primary Threshold/Lower Profits of approved software up to a maximum
has been provided under the scheme, the Limit to £9,568 and the Upper Earnings of £5,000, and free impartial advice,
government will continue to review the Limit (UEL)/Upper Profits Limit (UPL) delivered through an online platform.
impacts of the scheme to assess whether to £50,270, in line with the income tax
there is a case for further interventions higher rate. The UEL/UPL will then R&D tax reliefs
beyond the scheduled end date of remain aligned with the HRT at £50,270 The Government will carry out a
30 June 2021, in order to minimise until April 2026. All other NICs thresholds consultation into R&D tax reliefs to
disruptions in insurance coverage as the will be considered and set at future fiscal review all elements of the two R&D tax
economy recovers. events. relief schemes and consider bringing data
and cloud computing costs into the scope
Extended loss carry back for businesses of relief.
To help otherwise-viable UK businesses
which have been pushed into a loss-
making position, the trading loss
carry-back rule will be temporarily
extended from the existing one year to
three years. This will be available for Business support
both incorporated and unincorporated Super-deduction
businesses. From 1 April 2021 until 31 March 2023, Travel
companies investing in qualifying new Fuel Duty
plant and machinery assets will benefit Fuel Duty will be frozen in 2021-22 for the
from a 130% first-year capital allowance. eleventh consecutive year.
This upfront super-deduction will allow
companies to cut their tax bill by up to Vehicle Excise Duty (VED)
25p for every £1 they invest. Investing The government will uprate VED rates for
companies will also benefit from a 50% cars, vans and motorcycles in line with
first-year allowance for qualifying special RPI from 1 April 2021.
Tax changes rate (including long life) assets.
Corporation Tax VED and Levy rates for heavy goods
The rate of Corporation Tax will increase Help to Grow vehicles (HGVs)
from April 2023 to 25% on profits over Help to Grow will be delivered via two To support the haulage sector and
£250,000. The rate for small profits schemes – management and digital: pandemic recovery efforts, the
under £50,000 will remain at 19% and government will freeze HGV VED for
there will be relief for businesses with Help to Grow: Management 2021-22 and will suspend the HGV Levy
profits under £250,000 so that they pay This is a new UK-wide management for another 12 months from August 2021.
less than the main rate. programme to upskill 30,000 SMEs in
the UK over three years. Developed

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