Practical guidance for our rural and farming clients #33 – Spring Budget Special
In this week’s rural update we take a look at the Spring Budget announcements and what it means for our farming and agricultural business clients:
- Spring Budget 2021 – Pandemic support measures
- Which Spring Budget announcements affect farmers?
- The Spring Budget – A personal income review
- Pensions and the Spring Budget
- Is now a good time to invest in plant and machinery?
- Watch it back: Spring Budget review for farmers and rural businesses
If you have any questions about any of the topics we discuss in this update or relating to your own business please do get in touch with your Old Mill adviser in the first instance, or alternatively click here…
10th March 2021
Andrew Vickery See profile
Amongst a raft of continuing measures to support those impacted financially by the coronavirus, the Chancellor announced:
Furlough for employees
Extended until the end of September 2021. Employees will continue to receive 80% of salary for hours not worked, but businesses will be required to contribute towards payments of 10% in July and 20% in August and September.
Self Employed support
This too will continue until September 2021, with a fourth grant covering February to April 2021 at 80% of average trading profits, and a final grant covering May 2021 onwards. The final grant amount will depend on loss of turnover, with those whose turnover has fallen by 30% or more receiving the 80% grant; those with smaller losses will receive only a 30% grant. This cliff edge represents a significant difference so we recommend consulting with your adviser to ensure calculations are prepared properly. Those who are newly self-employed will also be able to access the scheme, provided they filed a tax return by midnight on 2 March 2021.
The £20 increase to Universal Credit will continue for six months, with similar support in the form of a £500 one-off payment for Working Tax Credit claimants. The National Living Wage will increase to £8.91 from the current rate of £8.71.
Support for jobseekers
Incentive payments for new apprentice hires will double to £3,000, and there will be £126 million of investment in traineeships.
Business grants and loans
The Chancellor announced £5 billion of new grants for some businesses. Non-essential retailers will receive up to £6,000 per premises, with hospitality and leisure businesses (including personal care and gyms) receiving up to £18,000 per premises.
The 100% business rates holiday will continue for all eligible businesses in retail, hospitality and leisure up to the end of June, with reduced rates for the nine months after.
Arts, culture and sporting institutions will have a support fund of £700 million as they reopen later in the year.
A new Recovery Loan Scheme is being introduced – as the Bounce Back and CBILS programmes end – under which businesses of any size can apply for loans from £25,000 to £10 million.
If your business has been adversely affected by coronavirus, there may be grants and business support options available to you. Speak to your Old Mill adviser who will take a robust look at your business and your options.
It was no surprise that pandemic support measures were front and centre of the March Spring Budget, with the Chancellor promising to continue to do ‘whatever it takes’ for a swift and sustained recovery. But what were the finer details impacting the farming and agricultural sector?
Click here for a full run down of what you need to know if you are an agricultural limited company, partnership or sole trader.
For the individual, there were also a range of announcements that may affect your personal or family decisions including:
- Saving and Investments
- Tax allowances and rate bands
- Residential Property
- Tax Administration
Click here to read more.
The Budget was reasonably kind to those who are able to make meaningful contributions to their pension funds as, once again, pension contributions have escaped significant changes in the Budget.
Read more about pension announcements and the options you have available to you here.