Skip to main content

Spring Budget 2020 Summary

Thursday, March 12, 2020
By Cheryl Sharp
Spring Budget 2020 Summary

As expected the CoronaVirus headlined the budget, with some great pledges to the NHS and to help businesses and the self employed.  I’m sure more details around this will emerge over the next days and weeks.

A big thank you to my husband who was watching yesterday and relaying all the key points to us in the office - I taught him well haha!!

The key points to note are as follows:

CoronaVirus:

  • Extended sick  pay meaning employees will be paid from day 1 instead of day 4 for any sick leave relating to the CoronaVirus (proof via 111 required).

  • Small businesses will be able to claim up to 2 weeks SSP from the government for all CoronaVirus sick leave.

  • Extended time to pay for business and self employed tax payments

  • CoronaVirus interruption loan scheme available to help businesses affected, with no fees and cover up to 80% of losses

  • Check out of Coronavirus blog for all the up to date government support, business advice and tips.

Business Rates:

  • A 1 year ‘holiday’ from business rates for retail, leisure and hospitality businesses with a rateable value under £51,000 from 1st April 2020

  • A fundamental review of business rates will finally get underway and report in the Autumn

  • Uttlesford Council have already put out a statement saying they know rates bills have already gone out for 20/21 - they are in the process of gaining all of the facts and will be in contact with all businesses eligible shortly, there is no need to contact them at this stage.  I suspect this will be the case for most other councils too.

Other Key Business points:

  • Entrepreneurs relief lifetime limit reduced from £10m to £1m

  • R&D expenditure credit increased from 12% to 13%

  • Employment Allowance will increase from £3000 to £4000

  • Corporation Tax to remain at 19% for the next two years

  • Upcoming changes to IR35 to continue as planned

  • Businesses eligible for small business rates relief will get £3,000 cash grant

Personal Tax:

  • National minimum wages will rise to £10.50 per hour by 2024

  • National Insurance threshold to increase from £8632 to £9500 (for employee contributions)

  • No changes to tax brackets

Other Key Points:

  • Tampon tax - VAT on sanitary products will be reduced from 5% to 0% from 1st January 2021

  • Reading tax - VAT on all reading material to reduce to 0% - this includes all digital products from 1st December 2020

  • Fuel duty to be frozen for the 10th consecutive year

  • Duties on spirits, beer, cider and wine to be frozen

  • Tobacco taxes will continue to rise by 2% above the rate of RPI

If you have any questions or require any further information on any of these points please do drop us an email on hello@pinkpigfinancials.co.uk