BUDGET 2020

Chancellor Rishi Sunak’s delivered his first Budget on 16 March 2020, just weeks following his surprise appointment as replacement for Sajid Javed.  It was overshadowed by the coronavirus crisis, with a £30 billion package of emergency measures announced, together with major investment plans to ‘level up the country’. The following were the main announcements affecting small businesses taxes:

Business taxes

  • Corporation tax remains at 19%
  • Entrepreneurs relief limit reduced from £10 million to £1 million from Budget Day
  • Temporary reliefs from business rates

VAT

  • Zero-rating of books and newspapers extended to digital equivalents

Personal tax

  • NIC threshold increased from £8,632 to £9,500 from 6 April 2020
  • Tapering of annual allowances on pensions thresholds increased by £90,000.