Autumn Budget 2021 – review for Not for Profits
We have set out below some of the key points from the Autumn Budget 2021 for not for profit organisations.
Creative sector reliefs
One of the few significant or positive Corporation Tax announcements today benefits creative sector charities. Museum and Galleries Exhibition Tax Relief (MGETR) which was due to end in March 2022 has been extended for two years, until 31 March 2024. Whilst this is only a temporary extension, it is still welcome news.
In addition, the rates of relief under MGETR, Theatre Tax Relief (TTR) and Orchestra Tax Relief (OTR) will be increased as follows (OTR is given at the “Touring” rates”):
With museums, galleries and theatres reopening following the pandemic closures, this is fantastic news for eligible charities!
Not for profit organisations must ensure that they budget for the pre announced increases to the National Living Wage (NLW) and the introduction of the Health and Social Care Levy.
The NLW will increase to £9.50 per hour from 1 April 2022. With National Minimum Wage rates also increasing for those workers aged 22 and under.
Whilst the Health and Social Care Levy will be 1.25% and apply in the same way as Class 1 and Class 4 NICs.