Budget 2020: Main Tax Changes
Here are the main tax changes from the Budget 2020. For a full report emailed to you tomorrow, sign up to our newsletter here.
1. NHS to get whatever it needs for #coronavirus
2. SSP available to all those who self-isolate from day 1 and similar help for self-employed and those on Universal Credit
3. Cost of providing SSP for smaller employers refunded in full by gov for up to 14 days
4. Business support loans for small businesses to help them through the #coronavirus
5. Retail and leisure business rates cancelled for 12 months for small businesses
6. £3k cash grant to smallest businesses who don’t pay business rates
7. By 2024 National Living Wage is forecast to be £10.50ph. This April Employees NIC threshold to increase from £8,632 to £9,500.
8. No more VAT on sanitary products. Alcohol duty increases have been cancelled. £5k discount off rates for pubs.
9. Fuel duty also frozen. Increases to start up loans for businesses. Entrepreneurs Relief lifetime limit is reduced to £1m. R&D credit increased to 13%
10. Small employers’ Employment Allowance (for Employers NIC) increased from £3,000 to £4,000.
11. Electricity levy frozen. Gas levy increased. New tax on plastic packaging. Red diesel relief restricted to agriculture & rail in 2 years time.
12. £120m for flooded areas. £200m for flood resilience in those areas. £5.2bn on flood defences everywhere.
13. £billions being spent on road infrastructure, devolution, schools, cities, further education.
14. VAT abolished on Digital publications from 1st December
15. As already announced, Corporation tax cut to 17% has been cancelled. It will remain at 19%.
16. It’s over! Largest sustained fiscal boost for 30 years… fastest rate of 15%… 2.8% rises.. largest Budget giveaway since 1992 Norman Lamont Budget, says the OBR.
Not announced in the speech:
17. Digital Services Tax of 2% of UK Revenue will be payable by companies with revenues greater than £500m from which more than £25m are generated by British users. That would include Facebook, Google, and Amazon.
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