Johnston Carmichael About Us Industry Experience Our Services Insights Careers Contact Brexit Budget 2021 Budget 2021 Back to home Budget for Businesses Budget for Employers Budget for Individuals Budget for Green Energy Budget for Innovation Budget 2021 Autumn Budget and Spending Review 2021 Chancellor Rishi Sunak opened his Budget and Spending Review announcement on 27 October with a rousing speech on the state of the nation, assuring his audience that while no line could be drawn under COVID and there will still be challenging months ahead, we should be in no doubt that the Government’s plan is working with the economy growing, those in jobs increasing, and the UK’s borrowing and debt going down. This Budget, the Chancellor stated, would "begin the work of preparing for a new economy". As expected, today’s announcement lacked any headline tax changes as these had largely been drip fed over the course of the preceding few months. The general theme was one of investment in infrastructure and innovation, and how the UK will take advantage of being outside the EU by tweaking legislation that’s now within our control. There were significant announcements in respect of the UK's Research & Development tax reliefs, and we've outlined these in our Budget for Innovation insights below. We've also explained how this latest Budget will impact businesses, individuals and employers. Budget for Businesses Budget for Employers Budget for Individuals Budget for Innovation Budget for Green Energy Health and Social Care Levy 2021 The way had been paved over recent months for a health and social care levy following on from the impact that the pandemic continues to wield on the NHS and our social care system. It was therefore not entirely surprising that the Prime Minister announced the levy on 7 September to pay for reforms with three changes to be introduced from 6 April 2022. Read our latest insight to find out the details. Tax Day: 23 March 2021 In the March 2020 Budget, the Chancellor Rishi Sunak highlighted the Government’s intention to create ‘a tax system fit for the challenges and opportunities of the 21st century’. On 23 March 2021, 'Tax Day', the Government published a number of measures supporting the next 10 years' tax administration strategy for the UK. The aim is for a fully digitalised tax system with individuals and businesses paying tax as they go. This will follow on from VAT Making Tax Digital which has been viewed as a success, producing tax calculations based on real time profits and giving the Government a one off cash tax boost. The aim is to have this in place from April 2023 for self-assessment and there was a call for evidence today on how to make tax more straightforward to pay. A short request and one that will need to cut through years of legislation and case law to achieve a practical solution. A second theme, was raising the standard in the tax advice market, with a consultation issued on seeking views on the definition of “tax advice” and a proposal to make it compulsory for all tax advisers to have professional indemnity insurance. This could be viewed as passing the policing of tax advisers to insurers but there is currently no easy solution to deter the less professional non-regulated entrants to the tax advice market. Another focus was the ongoing tackling of tax avoidance promoters through various measures to seek to close the “tax gap”, tackling disguised remuneration and off payroll workers. Read more here. UK Budget - March 2021 Chancellor Rishi Sunak delivered his Budget, saying he will do whatever it takes to support the UK's long-term economic recovery. Our team of experts have analysed the announcement and produced a helpful overview of the key areas announced, including what these mean for you and your business. The Government is determined to 'build back better' and for the UK, post Brexit, to become a world leader in green energy and innovation, whilst attracting talent and investment and making those who can afford to, pay more tax. The announcements covered three main elements to the Government’s recovery plan: Confirmation that the Government will do what it takes to support businesses and individuals through to the end of this crisis: furlough scheme extended to 30 September 2021 and help for self employed enhanced. Ability to carry back up to £2m trading losses for 3 years. Personal tax reliefs and bands frozen. The 5% VAT rate for hospitality, accommodation and attractions extended. Once the country begins to safely reopen businesses, steps will be taken to fix the public finances: HMRC will boost staff numbers to focus on tax avoidance and evaders. Corporation tax increases from 2023 for those making bigger profits. Personal tax reliefs and bands frozen. Building our future economy: A "super deduction" of 130% for companies spending on new qualifying plant to encourage investment; freeports; major green energy initiatives including a new bank; more money for Scotland and city deals for Ayrshire, Argyll & Bute and Falkirk. Scottish Budget - January 2021 Scottish Finance Secretary, Kate Forbes, delivered a Scottish Budget announcement with a focus on building "a fairer, stronger and greener country." Understandably the focus was on rebuilding the economy and continuing to support Scotland’s recovery through the COVID-19 pandemic and Ms Forbes laid out the Government’s tax and spending plans for the year ahead, including key announcements: No change in income tax rates Confirmation that the Land and Buildings Transaction Tax (LBTT) holiday will be lifted on 1 April 2021, but limited relief continuing for first time buyers The 100% non-domestic rates relief for property in retail, hospitality, leisure and aviation will continue for at least the first three months of the financial year. Read our full overview of the Scottish Budget here. Partner and Head of Tax and Brexit Team Susie Walker Tax Partner and Head of Tax, Susie joined Johnston Carmichael in 2012 following 20 years with Bank of Scotland, HBOS and latterly Lloyds Banking Group, as Group Tax Director. Meet our team Over 80 years of insight View our Insight Alexandra Docherty A Budget in all but name Craig Burnie Budget 2021: Corporation Tax changes Alexandra Docherty Budget 2021: Tax administration for income tax Michael Murray Budget 2021: Construction and Property Incentives Max Chassels Chancellor faces tough decisions if optimism is to spring from March Budget Andrew McMillan Hope for Dundee as innovation likely to figure high in Rishi’s recovery plans Mark Houston A critical Budget balancing act is required from Rishi Sunak Susie Walker Draft Scottish Budget 2021-22: Rollout, Recovery and Reopening Back to top Get in touch © 2021 Johnston Carmichael An independent member of PKF International Limited. 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