Autumn 2021 Budget Announcement– How Does It Affect Your Business?Nikki
During the Autumn Budget announcement on 27th October, Chancellor Rishi Sunak unveiled his plans to support an economy recovering from the effects of the Coronavirus pandemic.
He revealed the promising news that the UK economy is forecast to return to pre-covid levels by 2022, with annual growth expected to rebound by 6.5% in 2021, and a further 6% in 2022. He also said that unemployment levels are lower than expected, sitting at a peak of 5.2% instead of the 11.9% predicted.
We’ve listed some of the most important elements of the Autumn budget for businesses to be aware of below.
Fairer Business rates
To further support a recovering hospitality sector, the chancellor announced that there will be a new one year 50% business rates discount for retail, hospitality and leisure sectors – a tax cut worth a huge £1.7bn.
Mr Sunak also promised that moving forwards, he will make the business rates system fairer and timelier by increasing the rate of valuations. From 2023 there will be more frequent revaluations occurring every three years as opposed to the five-year review currently in place.
Investment relief for businesses
Great news for business hoping to adopt a greener approach – from 2023 every business can make property improvements without having to pay extra business rates. A freeze valid for 12 months after the improvements. This means businesses can install solar panels and electric car chargers without worrying about the impact on their rates.
Fuel Duty Freeze
An announcement that will benefit both motorists and businesses that rely on fuel – a planned rise in fuel duty has been cancelled amid already rising costs. This is in an attempt to mitigate the highest increase in pump prices we’ve seen in eight years.
Alcohol Duty Simplification
Another welcome announcement for businesses in the hospitality industry – a planned rise in alcohol duty on spirits, wine, cider and beer will be cancelled.
There will also be a simplification of alcohol duties, reducing the number of rates from 15 to just 6; the biggest change in over 140 years.
A new lower rate of duty on draught beer and cider will also cut existing rates by 5% while a small increase will apply to stronger red wines, fortified wines, and high-strength ciders.
Remember to keep on top the changes and your business finances with a smart accounting system like Sage 50cloud Accounts. From just £58.50 per month, it has everything you need to gain control of your business.