Budget 2021 – your complimentary Budget Report

Chancellor Rishi Sunak has now unveiled the UK Government’s 2021 Budget. In his  statement, Mr Sunak revealed plans to help the country’s economy after the unprecedented financial impact of the coronavirus crisis.

I am pleased to enclose a complimentary St. James’s Place Budget Report which provides an important overview of all the essential facts and figures.

CLICK HERE TO ACCESS THE BUDGET REPORT.

I  hope you find this useful in identifying how the tax changes announced may affect you. If you would like to discuss any specific areas of tax planning, please don’t hesitate to get in touch.

Wai Man Cheung
Senior Partner Practice of St James`s Place Wealth Management
WMC WEALTH MANAGEMENT
Mill Street, Fontmell Magna, Shaftesbury, Dorset, SP7 0NU
Tel: 01258 830099  07734 787804

www.wmcinvestment.com

Further details on COVID support measures announced in the Budget

In the Budget, the Chancellor announced a range of COVID support measures for business. The measures include extending the Furlough Scheme and the Self Employed Income Support Scheme, and industry-specific support.

Furlough Scheme
The Chancellor confirmed the Furlough Scheme would be extended until 30th September 2021. The payment to employees is maintained at 80% of wages up to £2,500 per month for furloughed hours. The Government will continue to pay a grant of 80% of wages for May and June, 70% of wages for July and 60% of wages for August and September.

Therefore, the employer continues to cover the costs of employer National Insurance and pensions contributions throughout and 10% of the wage costs in July up to £312.50 and 20% of the wage costs in August and September up to £625 per month.

Self Employed Income Support Scheme (SEISS)
SEISS has also been extended to 30th September 2021 and comprises tranche 4 and 5.

Tranche 4 covers the three months to 30th April 2021 and is based on 80% of three-month average profits and can be claimed from late April. However, if you are eligible, HMRC will contact you in mid-April and advise you of your claim date.

Under tranche 5, the grant is capped at 80% of three months average trading profits where the business’ turnover has reduced by 30% or more from April 2020 to April 2021. Where the reduction in business turnover is less than 30%, then the grant is capped at 30% of 3 months average trading profits.

To qualify for tranche 4 and 5 of SEISS, the individual must have submitted their income tax return for 2019/20 by 2nd March 2021 and still be trading in 2020/21. Their profits in 2019/20 should also be less than £50,000, or an average for the three years ending 2019/20 and trading income exceeds non-trading income. In addition, they will need to declare that their business has been adversely affected by COVID and there will be a significant reduction in their trading profits due to reduced business activity, capacity, demand or inability to trade due to COVID.

Therefore, businesses established in 2019/20 can now qualify for tranche 4 and 5 of SEISS, although they did not qualify for the earlier tranches.

Sector-Specific Support
The 100% business rates holiday for businesses in the hospitality, retail and leisure industries for 2020/21 is to be extended to 30th June, and then there will be a discount of up to 67% until March 2022.

When it has been permitted to open, the hospitality sector has benefited from a reduced rate of VAT of 5%, and this will continue until 30th September 2021. The VAT rate then increases to 12 ½% until 31st March 2022 and then returns to the full rate of 20%.

Recovery Loan Scheme
The existing Coronavirus loan schemes close at the end of March, and from 6th April, a new Recovery loan Scheme is available and closes on 31st December 2021. The loan can be used for any business purpose, and loans are available from £25,001 to £10,000,000.

To qualify for the loan, the business must be trading in the UK and show that it is viable or viable were it not for the pandemic, has been impacted by the COVID pandemic and is not in collective insolvency proceedings.

Businesses that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme if they meet all other eligibility criteria.

Further details will be provided in due course on these matters, and we will update you as appropriate.

If you require guidance on any of the above, please contact your TC partner on 0330 088 7111 or via www.tc-group.com.

Parvalux team gear up with festive fundraising bonanza for Lewis-Manning Hospice Care

Parvalux Electric Motors is gearing up for a festive fundraising bonanaza in aid of Lewis-Manning Hospice Care.

The business, a leading global manufacturer of geared motor solutions, has its full workforce of some 200 staff behind the hospice fundraising after staff voted for their preferred charity to support.  The business has 4 sites, with 2 in Bournemouth, 1 in Poole and 1 in Birmingham.

Managing Director Nick Parker said, “Parvalux has been a prominent manufacturing employer in Bournemouth for many years and although this year has been a tough one, our employees have pulled together and worked really hard to make it successful. We’re delighted to be in a position to help raise funds to support a great local charity such as Lewis -Manning Hospice Care, which was selected as our charity by a vote across all our staff. It’s especially important at this time of year and we hope that the new year brings better and happier tidings for everyone in 2021…..”

Finance Controller Liam Davis added, Our team is really passionate about fundraising, and this year we’ve created a whole month of festive fun and games. In week 1, staff guessed the number of chocolate brussel sprouts in a jar. The closest guess won the chocolates.  This week we have a giant teddy bear to guess the name of and win. Week 3 will be to guess the weight of the ham and in week 4 we will hold a Christmas raffle with some fabulous items on offer! Everyone pays a 50p donation to enter, with multiple entries allowed.” 

Corporate Partnerships Fundraiser Nicki Cluley advised, “We are so pleased to have the support of the team at Parvalux. We’re really excited about working together in 2021 with lots of different fundraising ideas to pursue.”

If your business is looking to support a local charity in anyway then please look no further than Lewis-Manning Hospice Care. Support can be anything from fundraising initiatives like team treks, to spinathons to volunteering at one of our events. To discuss further with our Fundraising team, call 01202 708470 or email, fundraisingteam@lewis-manning.org.uk.

About Lewis-Manning Hospice Care

Lewis-Manning Hospice Care is a charity established 28 years ago, providing extraordinary care to patients and their families facing a life-limiting illness across Poole, Purbeck and East Dorset. We offer a range of free hospice care services aimed at helping people to live well through their illness, closer to home.

These include:

– Day hospices, virtual and in person
– Creative arts & wellbeing support
– Lymphoedema clinic for cancer patients
– Better breathing clinic
– Family bereavement & support

Every year we support nearly 500 local people and we develop new services, based on patient need and identified gaps in the area.

To do this we need to raise over £1.6m every year. Without these funds we could not exist.

Our important work increases people’s physical and social well-being, reduces isolation and loneliness, supports people to stay in their homes longer, and alleviates the huge pressures on family and carers.

Registered charity no. 1120193

About Parvalux

Parvalux is the UK’s leading manufacturer of fractional horsepower geared motors.  Since 1947 we have been manufacturing geared motor solutions, during this time we have built a tremendous reputation for offering one of the world’s most extensive and reliable ranges of customisable AC and DC geared motor units. With over 20 million motors installed globally, we are proud of our heritage and reputation for high quality.

Saffery Champness Accountants join in #StepUp Challenge launched by Bournemouth entrepreneurs

Saffery Champness Accountants in Bournemouth has created a team to join in the #StepUp Challenge that was launched by Bournemouth nightclub owners Ty Temel and Benjamin Banks-Reynolds, together with fitness coach Jamie Whisken, aka ReDefine Jamie.

Launched on 1st November, participants have been encouraged to complete one million steps by December 21st, either individually, as a pair or in a team. That’s an average of 20,000 steps a day!

Proceeds will go to Dorset Mind and, in particular, men’s mental health.

The 50-day #StepUp challenge follows in the footsteps of #TheJune500 challenge which was thought up by Ty, Benjamin and Jamie as a way of keeping focused during the lockdown.

It saw a community of almost 200 people each complete 500 kilometres during June with a variety of active pursuits including cycling, running, swimming and more.

Ty, Owner of Halo Bournemouth, said: “We were blown away with the feedback we received from everyone about The June 500 challenge.

“After being inundated with requests for a new challenge we feel the time is right.

“With this challenge, we want to help both ourselves and others to have a focus again during an uncertain time and have an engaged community supporting each other.”

Saffery Director, Hannah Mazrae said , “At Saffery we jumped at the chance to join in the #StepUp Challenge. We have 8 team members who have been super keen to get involved, including Alex Simmons who is averaging an incredible 30,000 steps a day. He gets up at 5.30am, walks for 2 hours and is then back for breakfast with his 7-year-old daughter before she heads to school!

“Our team is due to compete in the ‘Race the Sun Brecon Beacons’ event in March 2021 – which involves cycling, kayaking and hiking.  We saw the #StepUp Challenge as perfect preparation to get fit and focused for this next team challenge.

“The #StepUp Challenge team includes myself, Alex Simmons, Henry Shirley, Collette Parry, Annalise Wareham, Maryna Lobova, Jake Walsh and our PR consultant Kate Shaw from KTPR.

“Our ambition is a team total of 7 million steps in 50 days.  We’d love people to support our fundraising, for such a brilliant and deserving cause. Please visit our JustGiving page here.”

 

About Saffery Champness LLP

Saffery Champness LLP is a firm of chartered accountants that advises individuals and families, not-for-profit organisations and businesses across a range of sectors. As a member of Nexia International, it is part of a worldwide network of independent accounting and consulting firms.

For over 160 years, the firm’s success has been founded upon providing clients with a genuinely partner-led service and working with them to create bespoke solutions that help them to achieve their personal and business objectives. For more information visit www.saffery.com or see Twitter @Safferys