Budget 2020 Update

Budget 2020 Update

Below are the key points from today's Budget that will have the biggest impact on our clients and their employees.

Corona Virus Response:

Extra support for the NHS to fight the virus - £5bn emergency response fund

Employees support:

  • Statutory Sick Pay (SSP) from day 1
  • SSP available to those who are told to self-isolate – even if they haven't presented with symptoms
  • Government to meet cost of providing statutory sick pay for up to 14 days for workers in firms with up to 250 employees
  • More help for self-employed or those in gig economy through £500m welfare boost and new £500m hardship fund

Business Support:

  • ‘Business Interruption’ loans available to SMEs
  • Some industries benefiting from 1-year business rates abolition where rateable value is below £51k
  • £3,000 grant available to businesses eligible for small business rates relief

General Budget Update:

  • National Insurance threshold to rise from £8,632 to £9,500 saving employees and the Self-Employed, between £85-£100 annually
  • Corporation Tax to remain at 19%
  • The reduction of the lifetime limit for Entrepreneurs' Relief from £10m to £1m

Changes to Pensions:

  • Threshold income for the tax year will be increased from £110k to £200k – this will help higher earners save for pensions with more tax efficiency
  • An intention to consult on the net pay tax relief issue to provide a solution for lower earners contributing to workplace pension schemes set up on this basis
  • An increase in the lifetime allowance. In 2020/21 the allowance will increase in line with CPI, rising to £1,073,100 - slightly higher than expected

Changes to finances from April 2020:

  • Those aged 25 and over will get the National Living Wage of £8.72 an hour, a rise of 6.2%, with younger workers also getting more
  • The full, new state pension will go up by 3.9% from £168.60 a week to about £175.20 in April

As always, if you have any concerns or questions regarding the above, please feel free to get in touch with us, as we are here to help.

Keep in touch

Leave your email with us and we’ll keep you up to date with special offers, news and information.

We’re proud to have been shortlisted for the Corporate Adviser Firm of the Year 2020