Budget 2020 Highlights
Here are the Highlights from today's Budget announcements. A more detailed review will be available very soon.
Corona Virus Response
- Statutory Sick Pay to be given to those who have to take time off work for the Corona virus, including those who have to self isolate even if they are not sick. Pay to be given from Day 1 rather than Day 4 from now on.
- Government to refund the cost of Statutory Sick Pay for up to 14 days, for businesses with less than 250 workers.
- Contributory Employment Support Allowance benefit claimants will be able to claim sick pay on day one, not after a week
- Business rates in England will be abolished for the year for small businesses, with a rateable value below £51,000 in the retail, leisure and hospitality industries.
- Small Businesses suffering as a result of the Corona virus can apply to local councils for a £3,000 payment - available to those which qualify for small business rate relief.
- SME's will have access to the new temporary Corona Virus Business Interruption Plan Scheme where banks will make Government backed loans available.
- A dedicated HMRC helpline to be set up for those who need a deferral period on their tax liabilities due to the corona virus crisis.
- National Insurance threshold increase from £8,632 to £9,500. This will save the average employed person £104 per year and about £78 for the self-employed.
- No changes to personal tax rates or thresholds.
- The 5% "Tampon Tax" is to be abolished on all women's sanitary products.
- Pensions taper limit increases to £200,000
Fuel and Alcohol Duty
- No increases on fuel duty.
- No increases to duty on beer, wine and spirits.
- Business rate discounts for pubs to rise from £1,000 to £5,000 this year
- No change to Corporation Tax
- The Employment Allowance will increase from £3,000 to £4,000 per annum from April 2020.
- Vat to be scrapped on digital media publications, such as newspapers and magazines.
- Entrepreneur's relief reduced to £1m lifetime limit.
- R&D tax credit to be increased from 12% to 15%
- £5bn to be spent on getting gigabit-capable broadband into the hardest-to-reach places
- Increase of taxes on Gas, no increase of tax on Electricity.
- Plastic packaging tax to be introduced from April 2022
- Manufacturers and importers whose products have less than 30% recyclable material will be charged £200 per tonne
- £1bn to promote and develop green transport
- 120m to help winter flood defences and £200m funding for local communities to help with flood defences.
- Subsidies for fuel red diesel will be scrapped in some areas, but will remain for farmers and rail operators
- £640m "nature for climate fund" to protect natural habitats, and creating 30,000 hectares of newly planted trees
- Decentralisation- 22,000 civil servants will be moved outside London.
- New civil service hub in the North of England, employing 750 staff
- Treasury to open new offices in Wales and Scotland
- £600m to get rough sleepers into homes.
- £12bn announced for Affordable Homes.
- Stamp duty surcharge of 2% for non-UK residents from 2021.
- NHS surcharge on immigrants increases to £624, discount for children.
- £2.5bn pothole fund
- £1bn fund to remove all unsafe combustible cladding from all public and private housing higher than 18 metres
Annnnd phew! That's the main points...I think. Feel free to contact us with points I may have missed- email@example.com. We will get a more detailed budget review together as soon as possible.