Summer 2021 Newsletter

Newsletters

Simpson Wood | 14th May 2021

Heading into sunnier times?

Although it still feels slightly unreal to see people talking with friends and family in beer gardens, it’s a clear sign, alongside the increasing number of people with the first vaccination in their arm, that things are looking more positive. It’s been an extremely long and difficult year for most, and once the population ventures out a little further it will be clearer what the final fallout for many businesses will look like.

The March Budget again directed our gaze towards the government’s extended generosity in supporting business through the Covid-19 pandemic. The many and varied support packages cast the net wider than previously to help those most in need. Extensions through September were announced for the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme, alongside business rates holidays for industries outside hospitality and leisure. These should help bridge the gap between lockdown lifting and businesses getting back on their feet.

The other side of the Budget of course was the not so surprising announcement of a range of what are widely regarded as stealth tax measures. Freezing income tax thresholds for four years also has a knock-on effect for those receiving child benefit. The high income child benefit charge, already controversial, will catch more basic rate taxpayers as the threshold diverges from the personal allowance.

For updates on these issues as well as the new VAT landscape for exporters and those in building and construction services, further reliefs for businesses including the new super deduction, and the latest on off-payroll working, see our April newsletter. And as always do get in touch if any of the issues covered affect you and your finances.

 

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