Budget 2021 one month away

Due to the pandemic the scheduled budget in November 2020 was postponed until March 2021, this date is fast approaching and is now only a month away. Over the last year the government has provided over £280bn to support both businesses and individuals through several Coronavirus schemes such as the Job Retention Scheme, Self-Employment Income Support Scheme and Small Business Grants.

As a result of this spending the Chancellor Rishi Sunak has always stressed that there will be tax increases to balance the books, the question is when these increases will be made and who will be affected. Due to the triple-lock commitment from The Conservatives back in 2019, where no increase in Income Tax, National Insurance or VAT would occur in this government, the focus for tax increases appears to be on Capital Gains Tax and Corporation Tax.

Although the general conscious is that no major tax hikes are expected next month due to the fact the economy is still affected by the pandemic, there is still speculation that a second budget in November could see larger tax increases.

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