Budget 2020 Update

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BUDGET 2020 UPDATE…

 

The 2020 budget was unusual in more ways than one. The Chancellor, Rishi Sunak is both one of the youngest and shortest serving Chancellors to ever deliver a budget, and does so in rather remarkable circumstances, the timing coming in the middle of the global Coronavirus outbreak. Additionally, with the effects of Brexit on the horizon and the lack of a budget at all in 2019 a ‘business as usual’ budget was hardly expected.

 

While not formally part of the Budget, but announced on the same day, and clearly with the same intention to give a shot in the arm to the economy, the Bank of England slashed the base rate to 0.25% to help make borrowing cheaper.

 

The following is a list of what we consider to be the key points from the budget. If the following information raises questions and you’d like to hear how we can help you or your business navigate these changes, we would welcome your contact on tax@sowerby-llp.co.uk or 01482 888820

 

2020 Budget –  Key Tax Announcements

 

  • Corporation tax rate held at 19%.
  • Entrepreneur’s relief lifetime limit reduced from £10m to £1m. This change takes effect immediately.
  • National Insurance Threshold increases to £9,500, from 6 April 2020
  • Pensions annual allowance tapering threshold increased from £150,000 to £240,000, from 6 April 2020.
  • Employment Allowance increased from £3,000 to £4,000, from 6 April 2020.
  • Structures and Buildings allowances increased to 3%, from April 2020.

 

2020 Budget  –  Coronavirus Relief Measures

 

  • Business rates discounts increased, from 1 April 2020
  • HMRC to extend scope of ‘Time to Pay’ arrangements with dedicated Coronavirus helpline.
  • Self-employed workers not eligible for sick pay able to claim contributory ESA instead.
  • Statutory sick pay is extended to commence from day one, rather than day four.
  • Government will fund SSP for two weeks for firms with fewer than 250 staff.
  • £3,000 cash grant grants to be available via local authorities.
  • ‘Business interruption’ loan scheme is to be introduced.

 

As with every budget, there is always much more detail than can be covered in a short blog. For more information, our full coverage is available via the following links, although please contact us if you would like to discuss anything budget related in more detail.

 

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