Budget March 2021 - What is changing for the self employed?
Today the Chancellor Rishi Sunak unveiled the long-awaited Budget 2021. We know that a lot of our social media followers and customers are or are looking to become self employed; to make things easier we've summarised below the key points from the Budget 2021 which directly affect the self-employed.
Budget 2021 - self-employed & sole trader
Whilst there has been a lot of speculation whether the Chancellor was going to penalise the self-employed for his post-covid economy recovery plan, it seems it's not as bad as most first expected. The key points to summarise are as follows (source BBC News):
- Coronavirus support
The key points are that the furlough scheme has been extended until the end of October 2021 - under this scheme the Government pays 80% of the employee's wages for hours they cannot work. The biggest announcement is that the self-employed are going to get more support and is extended that 600,000 more newly self-employed will benefit from a grant payment during this latest scheme. This self-employed grant will cover lost income for June, July and August and will be applicable also to anyone who became self-employed during the tax year 2019-2020.
Despite the furore, the Chancellor has announced no change to rates of income tax, national insurance or VAT.
Most importantly, it appears that the personal income tax allowance is to be frozen at £12,570 from 2022 to 2026.
Furthermore, higher rate income tax is set to be frozen at £50,270 from 2022 to 2026
Do you want to become a self-employed electrician?
We have courses for beginners, allied trades and existing electricians. In 2020 we launched our 4 Steps programme aimed at new entrants which provide a flexible and dynamic way to train to become a registered electrician. To find out more and to get in touch with one of our course advisers please call us on 0800 856 4448.
For more information on how to register as self-employed and for a list of useful links, please refer to our "How to Register as an Electrician or as an Electrical Business" blog at this link https://www.tradeskills4u.co.uk/posts/register-as-an-electrician-or-as-an-electrical-business