Autumn Budget 2021: Key points at a glance and what it means for the self-employed

Last week the Chancellor of the Exchequer Rishi Sunak delivered his Autumn Budget 2021 and Spending Review to Parliament.

To help you to understand the most important changes, here is a summary of the main points. 

• The freezing of Income Tax bands and allowances had already been introduced and will be a substantial tax-raising measure. The new Health and Social Care Levy was announced in September and includes the increase in National Insurance and Dividend Tax.

• From October 27, notification of and payment of capital gains tax on disposal of residential property will become due 60 days from the date of completion rather than 30 days previously.

• For capital allowances, the 100% Annual Investment Allowance continues at £1m until 31 March 2023 instead of reducing to £200,000 from 1 January 2022.

• Confirmation of the 1.25% increases in National Insurance contributions and Dividend Tax rates from 6 April 2022, as well as increases in most National Insurance thresholds.

• The introduction of a Residential Property Developer Tax from 1 April 2022 at 4% on profits over £25m.

• A detailed reform of the basis period rules for unincorporated businesses in 2023/24 and 2024/25 to coincide with the introduction of Making Tax Digital.

• Temporary relief for business rates for small businesses in 2022/23 with longer term reform to come.

• Making Tax Digital reform for Income Tax Self-Assessment to be introduced from 2024/25 along with a new penalty regime for late submission and payment.

If you have any queries on the topics covered in our UK Autumn Budget 2021 report, please contact us at info@guildhubservice.co.uk and we will be happy to help.