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[13.03.2020]

Budget 2020 – Key Points

On Wednesday 11th March the Chancellor for the Exchequer, Rishi Sunak, presented the government’s 2020 budget. The budget set out the tax and spending plans for the year ahead and also included considerations for the coronavirus outbreak and the financial burdens this may cause.

Here we will highlight some of the key points which came from the recent budget:

Coronavirus response

  • £5bn emergency response fund to support the NHS and other public services in England
  • All those advised to self-isolate will be entitled to statutory sick pay, even if they do not present symptoms
  • Self-employed workers who are not eligible will be able to claim contributory Employment Support Allowance
  • The ESA benefit will be available from day one, not after a week as usual
  • Firms with fewer than 250 staff will be refunded for sick pay payments for two weeks
  • Small firms will be able to access business interruption loans of up to £1.2m

Personal taxation

  • National Insurance Contributions threshold to rise from £8,632 to £9,500
  • No other new announcements on income tax, National Insurance or VAT
  • Tax paid on pensions of high earners to be recalculated

Business

  • Firms eligible for small business rates relief will get £3,000 cash grant
  • Entrepreneurs’ Relief will be retained, but lifetime allowance will be reduced from £10m to £1m
  • £5bn to be spent on getting gigabit-capable broadband to the hardest to reach areas
  • Manufacturers and importers whose products have less than 30% recyclable material will be charged £200 per tonne
  • Economy predicted to grow by 1.1% this year, revised down from 1.4% a year ago
  • However, the figure does not take into account the impact of coronavirus, and would be the slowest growth since 2009

 

 

If you would like to discuss how any of the budget announcements will affect you and your business please contact us and our experienced team will be happy to help.

Ian Lowry

 

 

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