Rishi Sunak's budget follows a year of extraordinary challenges on all fronts as a result of the ongoing COVID-19 pandemic. The support announced in the Budget reflects the upcoming easing of restrictions with the aim to enable the private sector to bounce back as quickly as possible. 

Protecting the jobs and livelihoods of the British people has been given an extra lease of support by the measures announced today. However, there was no separate support announced for limited company director's who have again been ignored.  

• Furlough Extension: after April there will be no changes to the terms for employees, who will still receive 80% pay for the usual hours not worked. As businesses start to re-open from July 21, employers will need to then contribute 10% in July and 20% in August and September when the scheme will then be brought to a close. 
• Self Employed Income Support Scheme Grants: a fourth grant will be available covering February to April, worth 80% of three month's average trading profits. Following this a fifth grant will be available, covering May to September. This grant will be at 80% for those whose turnover has fallen by more than 30% but for anyone whose turnover hasn't fallen by 30%, the grant will be capped at 30%. These grants will be open to self-employed individuals who have filed a 2019-20 self-assessment by 2nd March 2021. The fourth grant can be claimed from late April, with the fifth able to be claimed from late-July.

Business

• Corporation tax increase: from April 2023, the rate of corporation tax will increase to 25% for companies with profits over £250,000.  A small profits rate will mean that businesses whose profits are under £50,000 will still pay the current corporation tax rate of 19%. Any businesses in between these profit levels will get some relief instead of paying the main 25% rate.
• Hospitality and Tourism reduced VAT rate extension: the temporary reduced rate of 5% VAT for goods and services supplied by the tourism and hospitality sector has been extended until 30 September 2021.  Instead of a jump up to the 20% rate, we'll instead have an interim rate of 12.5% for six months until 31 March 2022, where it will then revert back to the standard 20%
• Grants/Loans
  • Restart Grants: up to £6,000 per premises for non-essential retail businesses and up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses.
  • Bounce back loans/Coronavirus Business Interruption Loan Scheme: will close as at 31st March 2021.
  • New Recovery Loan Scheme: from 6 April 2021, the scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes. The government will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million.
• Investment Super deduction: from 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will benefit from a 130% first-year capital allowance.
• Business rate relief: will continue at 100% from April 2021 to 30 June 2021. This will reduce to 66% from July to March 22 but this will be capped at £2 million if your business was required to be closed on 5th Jan 2021 or £105,000 per business for other eligible properties. 
• Help to grow schemes:
  • Management: the government will offer a UK wide new management training program to help improve skills of SME's to grow and thrive with 90% of the costs subsidised by government.
  • Digital: this will be used to encourage adoption of productivity-enhancing software. This will combine a voucher covering up to half of the costs of approved software up to a maximum of £5,000, and free impartial advice, delivered through an online platform.
• Measures to reduce R&D abuse by SMEs: for accounting periods beginning on or after 1 April 2021, the amount of SME payable R&D tax credit that a business can receive in any one year will be capped at £20,000 plus three times the company’s total PAYE and NICs liability. 
• Trading loss carries back rule: a temporary extension where companies can carry back trading losses to the previous 3 years rather than 1 year. Any losses made in accounting periods ending between 1st April 2020 and 31st March 2022 can be carried back.
• IR35 off-payroll working rules: the postponed changes to the off-payroll working rules (IR35) will be coming in as planned from 6th April 2021. 

Personal 

• Personal Tax Free Allowance: will rise to £12,570 from 6th April 2021 but will be frozen at this level until April 2026.
• Higher Rate Tax Threshold: will increase to £50,270 from 6th April 2021 and will remain at this level until April 2026.
• National Living Wage: will increase to £8.91 from 1st April 2021.
• Capital Gain Tax: the allowance will stay at £12,300 until April 2026. 

Housing

• Stamp duty extension: the temporary increase in the residential SDLT nil rate band to £500,000 in England and Northern Ireland will continue until 30 June 2021. From 1 July 2021, the nil rate band will reduce to £250,000 until 30 September 2021 before returning to £125,000 on 1 October 2021.
• Mortgage Guarantee Scheme:  a new scheme in April 2021 will provide a guarantee to lenders across the UK who offer mortgages to people with a deposit of just 5% on homes with a value of up to £600,000.  The scheme will be available for new mortgages up to 31 December 2022.

The Chancellor declared this to be 'bold, unprecedented action' that'd get companies investing and creating jobs, hoping that these measures would drive the UK's economic recovery and lay its foundation, whilst being honest about the challenges ahead.