Budget 2021: Income tax and Corporation tax updates

Whilst huge focus on the effects of COVID-19 on the economy is evident in the budget with announcements of the Furlough Scheme extension and Grants available, The Chancellor of the Exchequer Rishi Sunak continues his Budget 2021 announcement with a summary of what’s set for Corporation Tax and Income Tax.  

Corporation tax set to rise to 25% in 2023

Corporation tax will rise to 25% in 2023. This will affect businesses with profits over £250,000.

The Chancellor is set to introduce a Small Profits Rate which will help businesses with smaller profits.

Income tax rates until 2026

The income tax basic rate threshold will rise to £12,570 in 2022. Higher-rate income tax threshold will be set at £50,270. This will stay the same until 2021.

And, until 2024 the VAT registration threshold remains at £85,000.

Accountancy services

There’s no doubt that the past year has been tough for many businesses. Our advisory services can help with your tax planning, financial forecasting and budgeting. Working with our team of accountants, we can prepare a budget and plan tailored to your business to help you achieve your goals. We can help you stay on track, alert you to relevant grants and help you to meet required deadlines so that you do not incur any financial penalties.

With a team of accountants working for you, this forecasting can help keep you on target through regular reviews so that any necessary changes to your business plan can be implemented to help you reach your financial goal.