UK Budget 2021, what’s in it for Freelancers, Founders & Employees
Sitting on the edge of our sofas and armchairs, with little all else to do and the UK borrowing at a record high, the 2021 budget is one that none of us missed. Well apart from me, because I was doing what many others have been, working on my growing business. So with Rishi again announcing his support package for a nation on a lifeline – with 10% economic shrinkage, 700,000 unemployed and a year of doom and gloom to forget. What was interesting, as always with Othership, was to segment one of the worlds “most generous” fiscal support packages at over £407 billion to see what’s in it for Freelancers, Founders and all of us working flexibly.
Startups & Founders
- From July employers will be paying 10% towards furlough and 20% in August and September
- Corporation tax on company profits will rise from 19% to 25% in April 2023, tapering from 19% for those making less than £50k profit to 25% for those making more than £250k.
- Incentives for taking on apprentices will increase to £3000
- The Kickstarter scheme is a great way to find try to recruit and will be continued. You can email Francesco at Silicone Drinkabout to ask for more information.
- You will now be able to claim back 130% of any investment into plants and machinery and other qualifying investment. This is being called a “Super Deduction” to entice businesses sitting on cash to spend it pumping billions into the economy and great for those in or supporting manufacturing, agriculture and healthcare and many other sectors.
- You will be able to carry back losses of up to £2 million for a 3 year period making those 2 to 3-year scale-up plans more profitable than ever
- Taxes on the financial sector will be reviewed to maintain an internationally competitive marketplace
- Restart grants for non-essential retail of £6000 per practice and for accommodation, leisure, personal care up to £18,000 per venue accessible through your local councils
- Business rates relief for retail and hospitality has been extended until the end of June and then a 2/3 discount for the next 9 months
- £2k to £5k government-guaranteed Bounce Back Loans will be extended. They are interest-free for year 1 and 2.5% interest from year 2.
- £12bn of public funding for the UK’s new infrastructure bank with another £10bn in government guarantees as a method to replace some of the lost EU funding. The bank is set to focus on green and net-zero carbon projects. Sadly I don’t believe it’s up and running but you can read about it here.
- Help to Grow will be providing management training, mentorship and peer learning with 90% of the cost covered by the UK government – and there is also a 50%. discount on productivity software for those interested.
- A new Future Fund will be announced following an FCA review with more potential government co-investment.
- R&D and Enterprise Tax Relief will be reviewed to ensure they are world-leading for incentivising UK business growth
- The Self Employment Income Support Scheme has been extended with two more tranches of grants.
- The 4th grant will be made available for 80% of average trading profits and cover the period from February until April.
- The fifth and final grant covers lost earnings from May onwards and can be claimed from late July 2021 (exact date to be confirmed). What you’ll get with this grant. will depend on your fall in turnover. If it’s been reduced by 30% or more, you’ll get a grant of up to 80% as usual.If its 30% or less then it will be a 30% grant.
- The big news here is if you filed a tax return for 2019 2020 you will now eligible for the grants.
- The Film and TV Production Restart Scheme will ensure the sector is encouraged to return to good health with an extension fo another hundred million pound package.
- Furlough has been extended until the end of September Government to continue paying 80% of employees’ wages for hours they cannot work.
- Little else has really changed here folks, but maybe your company will now let you work remotely?!
All of us who want the freedom to work from anywhere
- Visa reform to attract the best Science, Research, Tech, Entrepreneurs and Scale-Up Founders