Date03 Mar 2021
Of course, the updates already noted in wider budget updates on the extension of furlough will provide welcome news for the sector and allow for continued planning with the safety net until the end of September.
The increase in minimum wages, whilst expected, will affect many charitable organisations, the challenge will be as to whether the increased costs can be reclaimed from funders, if not then budgets will need to be closely examined.
A number of funds have been released in areas such as arts and sport that will help many charitable organisations as the move to returning to normal pushes forward. Additionally, funding has been announced in areas such as domestic violence.
And finally, local community groups will have access to funds to “buy their local” and to then run it as a community business. An interesting challenge for the third sector is ensuring these are created with the correct constitution and have robust governance in place.
In respect of VAT, the 5% VAT rate extension for the hospitality industry will be beneficial for some, but only once the venues are allowed to open. The VAT registration and de-registration limits have been frozen, and this is a missed opportunity. If the limit had been increased, as was hoped, it could have taken a lot of smaller charities out of the cost of VAT accounting.
Have you been affected by the Budget?
Watch our webinar
On 4 March 2021, our expert advisors explored the technical issues arising from the 2021 Budget and provided a practical assessment of the key announcements and their impact for both businesses and individuals. As ever with the Budget, the devil was in the detail. Our presenters also highlighted issues the Chancellor may not have made obvious in his address to Parliament.
To watch our webinar recording and download a copy of our slides, click here.