March 2020 Budget – Headlines
Today we have had the March 2020 Budget and below is a summary of the notable changes.
Corna Virus Support –
The government has issued the following financial support to businesses to help them through the Corona Virus Period.
- Businesses with under 250 employees will have the first two weeks of sick pay refunded for any staff member off with Corona Virus
- HMRC have a new call centre being opened this week with 2000 staff to man the phones along with instruction to allow slow payments of taxes to give cash flow relief during this period
- A Corona Virus Loan scheme backed by the Government will be established for low rate loans to support businesses cash flow through the period
- All businesses in retail, leisure and hospitality with a rateable value of £51k or less will have rates removed for 2020/2021 England and Wales only.
- All businesses within the small business rates relief scheme can apply for a £3000 grant – England and Wales only.
- National living wage will plan to reach £10.50 by 2024
- National insurance will not be charged on income under £9500 this is up from £8632 currently
- No change to income tax thresholds
- No change to dividend tax rate or tax free amounts announced yet.
- No mention of IR35 meaning it will be rolled out as planned.
Duties and VAT
- Vat rate remains 20%
- Sanitary Products will be VAT free from Jan 2021
- Ebooks and newspapers will be VAT free from Jan 2021
- Spirits, Beer, Cider and Wine duty is frozen for the year ahead
- Fuel duty is frozen for the next year
- Pubs to receive £5000 business rates discount rather than planed £1000 – England and Wales only.
Business Related announcements
- Corporation Tax frozen at 19%
- Start up loan fund topped up with £130m
- Small employers allowance has increased from £3000 to £4500
- Entrepreneur Relief Allowance reduced to £1M lifetime allowance
- Red Diesel duty reduction scrapped from 2022 for all industries other than rail, fishing and agriculture
- Plastic packaging tax – from 2022 all packaging with less than 30% recycled plastic in it will be tax at £200 per ton
- Research and Development Tax relief up from 12% – 13%
- Making tax digital will be reviewed following the VAT roll out and no updates on the other taxes going digital
This blog will be updated as we get more updates