Photo by The New York Public Library on Unsplash | Here we explain in bullet points how the 2021 Budget impacts upon Business Tax . With all of the important points to take note of... |
- Corporation Tax will remain at 19% for companies with profits less than £50,000 and a tapered increase to 25% will be applied from April 2023
- The maximum flat rate income tax deduction available to employees to cover additional household expenses continues at £6 per week where they work at home under homeworking arrangements
- New Super Deduction Capital allowances on plant and machinery of 130% - normal rules apply
- It was previously announced that the Annual Investment Allowance will remain in place until 31 December 2021 – some clarity is needed on how this links with the new 130% deduction
- Business asset disposal relief continues upto £1m for those thinking of selling or closing their company
- Just like in the 2008 financial crisis, a 3 year carry back of Corporation Tax Losses will be available
- The electric car ‘sweet spot’ I’ve mentioned before continues