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Hello and welcome to Startups.co.uk’s live coverage of the Autumn Budget 2021.
We’ll be offering regular updates on this crucial day for UK small businesses, as the Chancellor Rishi Sunak outlines how he will support the country’s economic recovery and help small businesses reeling from the already announced increases to National Insurance rates and the National Living Wage.
Many groups have already had their say and, to find out what’s on the budget wishlist of UK SMEs, check out our piece on what small businesses want from the budget.
The budget proper is expected to start at 12:30pm GMT, but we’ll start by explaining what we know so far.
What to expect from the Autumn Budget 2021?
National Insurance increase
We covered the increase in National Insurance rates when it was announced in early September but it’s worth reiterating here.
From April 2022, both employers and employees will pay 1.25 percentage points more in National Insurance, increasing the employer basic rate from 13.8% to 15.05%.
National Living Wage rise
Although not yet officially announced, it has been widely reported that the National Living Wage (the minimum wage) will increase from £8.91 per hour to £9.50 per hour.
This hike will affect those aged over 23, and take effect from April 2022.
Corporation Tax increase in 2023
Another measure that was leaked ahead of time, the main Corporation Tax rate will increase to 25% from April 2023.
This will only apply to companies who make annual profits of more than £250,000, but is something to bear in mind for larger SMEs that want to plan for the future.
Business rates
It was widely expected that the government would finally make a decision on business rates reform in the Autumn budget, after a protracted study of the current system.
However, it seems like that decision has been delayed yet again, and all we can expect today are minor tweaks like being able to invest in environmentally friendly tools like solar panels without increasing your business rates.
via https://www.AiUpNow.com
October 27, 2021 at 07:32AM by Alec Hawley, Khareem Sudlow
