Budget 2021 was announced amidst a global health pandemic which has already wreaked havoc on the economy, the Government are also faced with the prospect of a ‘No Deal’ Brexit in a matter of weeks.
With the SME sector, in particular, bearing the brunt of lockdowns and restrictions on their trading activities, businesses across all sectors were looking to the Ministers for some relief to ensure that they could face in to 2021 with at least some silver lining to the dark clouds that rolled in during 2020.
As it turns out, a budgetary package of almost €18bn, including a recovery fund of €3.4bn to tackle COVID-19 and Brexit, was announced.
Here, we take a look at how Budget 2021 affects small businesses and the self-employed:
- Earned Income Tax Credit for the self-employed increased by €150 to €1,650
- COVID-19 Restrictions Support Scheme announced for businesses forced to close or whose trade has been severely impacted by Government restrictions during COVID-19
- Changes to Pandemic Unemployment Payment – self-employed can earn up to €480 per month whilst still qualifying for the payment
- VAT rate on hospitality and tourism sector cut from 13.5% to 9%
- Tax Debt Warehousing Scheme set to be extended to include Temporary Wage Subsidy Scheme repayments and 2020 Preliminary Income Tax payments
- Commercial rates holiday extended for remainder of 2020
- Employment Wage Subsidy Scheme to be extended beyond March 2021
- State pension age to remain at 66 – had been due to increase to 67
- Enhanced Help to Buy Scheme extended for a further 12 months
- Carbon Tax has been increased by €7.50 to €33.50 per tonne
- Farming – Stamp Duty reliefs for transferring agricultural land extended
For the full TaxAssist Accountants Budget Summary, please click here.
For a 2021 Tax Rate Card, please click here.
Join us in three easy steps
Get in touch
Arrange a free consultation in person or via video with your local accountant. It’s an informal chat to get to know you and find out more about the help you are looking for.
Chat to an expert
We clearly explain the support available to you and are happy to act as business advisors in order to help you grow your business.
Get a fixed quote
Our fees are fixed and tailored specifically to each individual's needs, so that you only pay for the level of support and services that you require.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 6,246 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 23 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.