In Rishi Sunak’s budget speech lasting a little over 60 minutes covering topics from Coronavirus to Economic Growth, Public Spending and Taxes, and Wages, you may be left wondering what this means for you and your business?
- The threshold for National Insurance Contributions will increase to £9,500, meaning that employees earning above this threshold will benefit by £104 per year.
- Fuel duty remains frozen despite growing pressure to move towards greener methods of transport.
- No other announcements were made on income tax or national insurance.
- As expected Rishi Sunak reversed the budget promise of the previous administration to reduce Corporation Tax to 18% by freezing it at 19% in a move to preserve additional funding for the NHS and remaining the lowest tax rate in the G20.
- Annual Employment Allowance has been increased for eligible employers from £3,000 to £4,000 which will see businesses benefit from a post-tax increase in profits of up to £810.
- VAT is set to be scrapped on digital publications, including books and Newspapers.
- Entrepreneurs’ relief lifetime limit is being reduced from £10 million to £1 million. This will mean that entrepreneurs closing their businesses will qualify for the 10% capital tax rate on the first £1 million only.
- It was promised that a review of the business rates system will take place later this year.
- £130m of new funding for start-up business loans was announced as was an additional £200 million of funding for the British Business Bank for scale-ups.
The government was very quick to announce that support to see the UK through Coronavirus would have cross-party unity as well as all the resources required to deal with the outbreak. This could affect you in the following ways.
- Statutory sick pay can be claimed from day 1, brought forward from day 4 in the event you are required to self-isolate. A sickness letter can be requested by calling 111. Available to all who have been advised to self-isolate.
- Small employers with under 250 employees can claim back statutory sick pay entitlement for a two week period of illness. Also available from day one of being advised to self-isolate.
- Self-employed workers, who are not eligible for sick pay, will be able to claim contributory Employment Support Allowance.
- Small businesses will be able to access “business interruption” loans of up to £1.2m.
- Small business businesses that pay no business rates will be entitled to a cash grant worth £3,000.
Get in touch
If you would like to speak to us to discuss any of the announcements in the March 2020 budget please contact us, and we will be happy to help.