Budget 2020

The new Chancellor of the Exchequer, Rishi Sunak, delivered the Budget on Wednesday 11th March 2020.

We are providing blogs and guides following on from the Budget, highlighting the key areas and helping you to plan ahead for your business.

Download our ’10 Key Points’ summary


Download the 2020-21 tax rate card


Budget 2020 – Main points

Coronavirus measures

  • Small and medium businesses will be entitled to “Coronavirus Business Interruption” loans
  • Businesses with fewer than 250 members of staff will be refunded for sick pay payments for two weeks where the payments are linked to absence related to Coronavirus
  • The Government will pay statutory sick pay for workers who self-isolate, even if they have no symptoms, for firms with up to 250 employees

Business tax

  • R&D Expenditure Credit will rise to 13% from 12% (£22bn annually) from 1 April 2020 and the Government have committed to increase total investment on R&D within the UK to 2.4% of GDP
  • The lifetime limit for Entrepreneurs’ Relief will be reduced from £10m to £1m
  • Small businesses that pay no business rates will get a £3,000 cash grant
  • Manufacturers will be charged £200 per tonne where their products contain less than 30% recyclable material

Personal tax

  • The National Insurance threshold will rise from £8,632 to £9,500
  • The pensions taper affected those with adjusted income between £150,001 and £210,000. Now it will affect those with adjusted income between £240,001 and £312,000. Importantly, the tapered annual allowance can now fall as low as £4k whereas the minimum was previously £10k. However, it only affects those with adjusted income in excess of £312k
  • There were no other major new announcements on income tax, NIC or VAT but there were a range of minor changes which we would be delighted to discuss with you

Housing

  • The Affordable Homes programme will be extended to provide £12.2b for building affordable homes across the UK
  • £1bn will be put into the Building Safety Fund to remove unsafe cladding from buildings above 18 metres
  • Further education college buildings will get £1.5bn in new investment

Climate

  • £500m to support the roll-out of rapid charging hubs for electric vehicles
  • £1bn investment into green transport solutions
  • The red diesel tax will be abolished in 2 years
  • The levy on electricity will be frozen from April 2022 in favour of gas

Our Budget 2020 blogs