These are the items included in the Chancellor's Budget 2020 Statement which we have
picked out as likely to be of most interest to small businesses and in personal tax
matters. For more information please don't hesitate to contact us.
Extension of IR35 Rules (aka "Off Payroll Working") to the Private Sector: he confirmed
that this will be effective from April 2020 despite huge representations across industry
requesting at least a postponement. Please see IR35 under our 'Useful Info' Tab.
Income Tax: personal tax allowances and the rates of income tax are unchanged and
Corporation Tax remains at a flat rate of 19%.
National Insurance: the various thresholds have been increased, reducing the burden
of National Insurance for the self-employed, employees and business. Talk to us about
new levels of salary for directors of private companies.
Capital Gains Tax on sale of business: the Entrepreneur's Relief ceiling has been
drastically lowered but this will only effect a tiny proportion of people, being
those making very substantial profit on a business sale.
Business Property Rates: significant help to smaller businesses in retail, leisure
and hospitality sectors with an additional £3,000 grant to businesses entitled to
the Rateable Value Rebate. Following the Budget, there have been significant representations
from larger businesses which are likely to bear much of the impact from the spread
Statutory Sick Pay: temporary changes to help workers and businesses during the
Coronavirus outbreak, including an entitlement to SSP from Day 1 of Coronavirus-Related
sick leave and a reimbursement of relevant SSP to small businesses via HMRC SSP.
Entitlement from Day 1 also applies to those in the gig economy. A small business
is defined for this purpose as having fewer than 250 employees.
The introduction of a dedicated helpline for those requiring additional time to
pay various taxes.
An extension to the Bank Guaranteed Loan Scheme with up to £1.2m in extra support.
Tax Relief for qualifying expenditure on Research & Development increased from
12% to 13%.
Pension Fund Tax Clawback – improvement to the Tapered Annual Allowance which has
led to many in the NHS, primarily Consultants and GPs, having a tax clawback on overtime
at more than 100%! Very welcome, especially with this Coronavirus outbreak.
Naturally, should you wish to discuss any tax aspects in more detail please don't
hesitate to get in touch.
For information on any other matters please click here.