The 2020 budget was announced today on the 11th March. Below is a summary of some of the major points that could potentially impact our clients at Indigo Accounts:
- All those advised to self-isolate due to Coronavirus, regardless of if they have symptoms will be entitled to SSP (statutory sick pay).
- Self-employed workers affected by Coronavirus not eligible for SSP will be able to claim contributory Employment support allowance. This will be available from day one, not after a week as it is currently.
- Businesses with fewer than 250 employees will be refunded sick pay payment for 2 weeks, for those affected by Coronavirus.
- The threshold for National Insurance Contributions will rise from £8,632 to £9,500. Meaning those earning more than £9,500 a year will be £85 a year better off.
- VAT on women’s sanitary products will be scrapped.
- VAT on digital publications to be scrapped from December.
- Firms already eligible for small business rates relief will get a £3,000 cash grant.
- The lifetime allowance for Entrepreneurs’ Relief will be reduced from £10m to £1m.
- The Employment Allowance will be increase from £3,000 to £4,000.
- From 2020/21 the ‘threshold income’ will be £200,000 (increased from £110,000), so individuals with income below this level will not be affected by the tapered annual allowance, and the annual allowance will only begin to taper down for individuals who also have an ‘adjusted income’ above £240,000.
The full 2020 budget details can be found here.
If you would like advice on how these changes may affect you please Contact Us.