Autumn Budget 2021 Analysis
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Autumn Budget 2021 Analysis

The Autumn Budget, being held on 27 October 2021, is Rishi Sunak’s third since becoming Chancellor last year and the issues he was grappling with in the Spring are still here now.

The country has had to deal with the worst economic recession in 300 years and, due to the support that was needed during Covid, unprecedented levels of debt. More recently there have been supply chain issues, labour shortages and a looming energy crisis all of which means inflationary pressures are beginning to bite.

The question is what are the Chancellor’s priorities for this budget? Will there be further tax rises to start to pay back the debt or to fund specific spending requirements? Will there be more support to businesses and individuals to #BuildBackBetter?

The Government has said it is going to be a ‘technical’ Budget – so it is likely that the devil will be in the detail and we will be going through the announcements (and of course the detail) to give insight into what the Autumn 2021 Budget will mean for you, your income, your assets and your business.

Budget-Illustration

Pre-Autumn Budget Analysis

Rise in National Insurance contributions

On 7 September, the Government announced a rise in National Insurance contributions to address the funding crisis in the NHS and social care – an announcement that could be seen as a ‘mini-budget’. John Endacott, Head of Tax and Steve Ashworth, Employment Tax Director, have produced a series of articles on the measures. For further analysis, please following the links below:

Health and social care levy – how might employers and business owners respond?

What the national insurance increase means for businesses and tax policy

The employers perspective on national insurance and the health and social care levy

Making Tax Digital

It has also been recently announced that Making Tax Digital for income tax and self-assessment (MTD for ITSA) has been delayed from April 2023 to April 2024 (and it is likely that the further rollout of MTD for corporation tax etc. will also be delayed).

Alana Hamson, Head of Cloud Accounting looks at the what, when and how of MTD for ITSA and suggests ways in which you can prepare in order to get ahead. For further analysis, please follow the links below:

Making Tax Digital for income tax has been delayed until April 2024

Post-Autumn Budget Analysis

Your Income

The national insurance increase and dividend tax has already been announced, will there be any other announcements on the 27 October?

Further analysis coming soon…

Your Assets

Capital gains tax rises (or annual exemption reductions) have been rumoured for some time, not a massive tax raise for the Government, but perhaps politically easier than a lot of tax rises?

Further analysis coming soon…

Your Business

Increases to corporation tax rates were announced at the last Budget, and the NIC rise has a real impact on businesses, particularly those whose business models rely on lots of labour. Business rates for bricks and mortar businesses has long been an issue – particularly when compared to tax paid by digital businesses, could the Chancellor address this on 27 October?

Further analysis coming soon…

2021 Autumn Budget Webinar

Join us on Thursday 28 October @12.00-12.45pm for a conversation with Head of Tax, John Endacott, who will discuss the events of the previous day and what that will mean for individuals, businesses and the wider UK economy.

Talk to our experts about the
latest budget updates:

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