Budget Highlights for Hospitality Sector

Budget 2021 – Hospitality industry : What you need to know

  1. Furlough Scheme to continue till September 2021:

Employers           will receive 80% of wage. NIC and Pension to be paid by

                              From July 2021 employers will need to contribute 10%

                              In August and September contribution will increase to 20%.

Employees          No change they continue to get 80% of their wage for hours not
worked. Tronc not included.

  • Self-employed Grants

Fourth grant (Feb to April 2021)                        80% of profits                   Can be claimed in late April

Fifth grant   (May to Sep 2021)                          turnover criteria as below:                         

Turnover fallen.

More than 30% – 80% of the profits ; same like before.

Less than 30%    – 30% of the profits instead of 80% before.

  • National Minimum Wage increases to £8.91 from April 2021.
  • Apprentices – Employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire, compared with £1,500 per new apprentice hire (or £2,000 for those aged 24 and under) under the previous scheme.

5.  Local grants to end in March. New Restart grant to be given @£18k per premises.       

6. Recovery Loan Scheme. From 6 April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million. This replaces Bounce Back loans and CBIL.

7. Business Rates. 100% relief for April to June 2021. This will be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022, capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.

8. VAT. 5% to continue till 30th Sep 2021. Then 12.5% for next 6 months. Full 20% from 1st April 2022.

9. Corporation Tax. From 1st April 2023 main rate at 25%. Companies with profit less than £50k will still be 19%. Taper relief for companies with profits between £50k and £250k.

10. Super Deduction. In case you are feeling brave. 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. 

11. Alcohol and fuel duty frozen for another year.

12. Help to Grow. The government will offer a new UK-wide management programme to upskill SMEs in the UK over three years. Over 12 weeks, and 90% subsidised by government.

13. Help to Grow: Digital – The government will launch a new UK-wide scheme in the autumn to help SMEs save time and money by adopting 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.

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