11th March 2020
I don’t know about you but I love watching the Budget. For accountants around the country it is crucial for us to be up to date with key changes that will affect our clients of which the majority are small businesses. Therefore I took an extended lunch break today and sat down with a decaf coffee and a kit kat bar with my notebook so that I could absorb all that the Chancellor has announced in today’s budget.
So to summarise for you here the key points that I think you should be aware of:
Coranavirus Impact
- The response to Coranavirus has been a excellent one from the Chancellor today as he announced a £5bn emergency fund to support the NHS.
- Anyone advised by 111 to self isolate will be entitled to statutory sick pay from day 1 even if they have not been presented with symptoms. To get a sick note, you can do so by calling the NHS on 111.
- Businesses with less than 250 employees will be refunded for sick payments for 14 days.
- Small businesses will be able to access a new temporary loan (business interruption) of up to £1.2m. This is to help smaller firms that may face cashflow issues.
- Business rates in England will be abolished for firms in retail, leisure and hospitality sectors with a rateable value below £51,000.
Tax & Business
- The National Insurance Contributions threshold will rise from £8632 to £9500. Those earnings more than £9,500 will be on average £85 a year better off.
- The 5% tampon tax which is the VAT added on women’s sanitary products will be abolished now that we have left the EU.
- VAT is abolished on ebooks and digital newspapers
- Entrepreneur’s relief is here to stay (after talks of abolishment last year) however it will be reduced from £10M to £1M
- Small businesses that are eligible for small business rates relief will get a £3000 cash grant.
- Plastic packaging tax will come into effect from April 2022
- Stamp Duty surcharge for foreign buyers of UK properties will be levied at 2% from April 2021
- Employment allowance for businesses will increase from £3000 to £4000.
There have been no further talk regarding taxes but the sooner I know of any changes I will let you all know. If there is anything above you wish to discuss or think will impact you, please do not hesitate to contact me.