Bournemouth Chamber of Trade & Commerce


Bournemouth Chamber of Trade and Commerce


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.


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
Mill Street, Fontmell Magna, Shaftesbury, Dorset, SP7 0NU
Tel: 01258 830099  07734 787804

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

Chancellor announces tax and spending plans in Budget

As the country continues to deal with the COVID crisis, Chancellor Rishi Sunak announced in his Budget today a broad range of measures to support businesses and households alongside details of how the ongoing support shall be financed.

The business support headlines include:

  • The extension of the Furlough scheme until the end of September at the 80% rate, although employers are required to cover 10% in July and 20% in August and September;
  • The 4th tranche of Self Employed Income Support Scheme (SEISS) will be at 80% of the 3-month average profits and can be claimed from late April;
  • A 5th tranche of SEISS is available for May to September but at a reduced rate depending on the reduction in profits of the business;
  • Business rates holidays for retail, hospitality and leisure will continue to the end of June and at a discount of up to 67% for the remainder of the year;
  • Recovery loan scheme providing loans from £250,000 to £10,000,000 that will be 80% guaranteed by the Government;
  • A super deduction allowance for businesses investing in new plant and machinery from 1st April 2021 to 31st March 2023, giving a deduction of 130% against profits in the year of acquisition or 50% on special rate assets.

In addition to these broad business support measures, the Chancellor outlined details of his sector-specific support:

  • The reduced VAT rate of 5% for the hospitality sector will continue until 30th September 2021. It will then increase to 12.5% until 31st March 2022 before returning to the full rate of 20% on 1st April 2022;
  • The construction sector is being supported by the Stamp Duty Land Tax nil rate band extension for residential properties. The temporary £500,000 nil rate has been extended to 30th June 2021. It will then be reduced to £250,000 until 30th September 2021 and then return to the standard band of £125,000.

The Chancellor also announced he would extend the Universal Credit increase of £20 for six months to support households on lower incomes.

The Chancellor has set out a plan to raises taxes to protect the Exchequer from these additional costs, including:

  • Increasing the rate of Corporation Tax to 25% from 1st April 2023 for companies with profits over £250,000, whilst for companies with profits up to £50,000 the Corporation Tax rate will continue at 19%. There will be a tapered rate between these two profit levels;
  • The freezing of personal allowances and income tax rate bands for 6th April 2022 to 5th April 2026;
  • The thresholds and bands for Pensions, VAT, Capital Gains Tax and Inheritance Tax will remain unchanged.

As expected, this was a generous Budget to support businesses and households, although a large burden will fall on successful businesses, who face a big tax increase from 2023 to finance the announced measures.

We will provide further guidance on these announcements as and when more details are made available.

If you would like to understand how this affects you, please contact TC group at