Autumn Budget Statement 2021

By October 29, 2021Client Zone, News

Autumn Budget Statement 2021

Friday 29th October 2021

The Chancellor of the Exchequer, Rishi Sunak, delivered his Autumn Budget and Spending Review 2021(SR21) to Parliament on Wednesday 27 October 2021.

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This Budget follows another year of extraordinary economic challenges as a result of the ongoing
COVID-19 pandemic. In our comprehensive guide, we look at what the key announcements could mean to you, your family and business.

With the economic recovery underway and emergency support winding down, the Autumn Budget and SR21 set out the government’s plans over the rest of the Parliament. The SR21 sets departmental budgets up to 2024/25.

At the heart of these plans is the government’s ambition to level up, reducing regional inequality so that no matter where in the UK someone lives, they can reach their full potential, find rewarding work and take pride in their local area.

The optics of the Autumn Budget were that taxpayers’ money will be spent where it makes the most difference to people’s daily lives: creating high-wage and high-skilled jobs, reducing NHS waiting lists, putting more police on the streets, upgrading roads and railways, and building new homes, hospitals and schools.

The pandemic has demonstrated the risk of unforeseen shocks and there remains uncertainty around the path of the virus. The Chancellor admitted the months ahead will be ‘challenging’. He said: ‘The Budget does not draw a line under COVID’ but he declared it will pave the way for a ‘new economy post-COVID’.

Mr Sunak said employment is up and investment is growing, outlining that the UK is ‘recovering faster than major competitors’. He announced he would prepare the country for an ‘age of optimism’.

What does the Autumn Budget 2021 mean for you?

The main issues that will affect out typical client had already been announced before. That is an extra 1.25% NI increase and extra 1.25% on dividend tax. If you hold a limited company that is cash rich, or you owe a director’s loan to that company you may consider taking more dividends this year before the April 2022 rise. Of course, this will need to be fully discussed with us or your accountant before taking action.

Pension relief remains intact. Capital Gains tax is predominantly unchanged and allowances have not been tampered with beyond being frozen.

In our comprehensive guide to the Autumn Budget and Spending Review 2021, we reveal the key announcements. If you have any questions or would like to discuss your situation – please contact us.

Kind regards

Mike Marigold, CEO

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