We will be releasing further information as soon as it’s available on how you can benefit from some of today’s budget announcements but please get in touch if you want to discuss any of the points and how they affect you and your business.
Coronavirus response
- Statutory sick pay will be paid to all those who choose to self-isolate for 14 days even if they don’t have symptoms. Employees will receive £188.50 SSP for the 14 days they are off work
- 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.
Business taxation
Business rates will be abolished for this year for firms in the retail, leisure and hospitality sectors with a rateable value below £51,000.
- £3,000 cash grant to businesses eligible for small business rates relief
- Employers NI allowance will increase from £3000 to £4000 this April
- Entrepreneurs’ Relief will be retained, but lifetime allowance will be reduced from £10m to £1m
- Corporation Tax remains at 19% and will not be cut to 17%
- Investment in R&D to increase to £22bn a year.
Personal taxation and wages
- National Insurance Contributions tax threshold to rise from £8,632 to £9,500 – saving typical employee just over £100 a year
- National Living wage will increase over the next 4 years up to a figure of £10.50 per hour in 2024
- 0.5% VAT on women’s sanitary products, the tampon tax, to be scrapped.
Alcohol, tobacco and fuel
- Fuel duty to be frozen for the 10th consecutive year
- Duties on spirits, beer, cider and wine to be frozen
- Business rate discounts for pubs to rise from £1,000 to £5,000 this year.