BUDGET FOR CORONAVIRUS
The measures complemented the emergency rate cut from the Bank of England and provide financial bridge during the outbreak, these measure include;
OTHER KEY BUDGET MEASURES
Most of the extra spending announced is on day-today departmental expenditure covering nurses, policemen etc.
We summarise the main points for business owners below.
National Insurance – current threshold sees employees and self-employed paying contributions once they earn £166 a week, equivalent to an annual salary of £8,632 a year. From April, you start paying when earning £9,500.
According to the Institute for Fiscal Studies this means 500,000 people will no longer have to pay tax, and those paying, will up to £85 per year better off.
Employment Allowance – will increase from £2,000 to £4,000 in April. This means eligible businesses and charities will be able to claim a greater reduction on their Secondary Class 1 National Insurance Contributions liability.
Entrepreneurs' Relief – Was not fully abolished as widely predicted, and instead has been delayed to November. However, the lifetime allowance was reduced from £10 million to £1 million for qualifying disposals mad on or after 11 March 2020. There are special provisions for transactions and elections designed to bank the £10 million lifetime limit prior to the change.
Corporation Tax – no change as the rate remained at 19%
Pension Tax for Higher Earners - Threshold for income will be increased from £150,000 a year to £200,000 (including salary and the value of pensions earned).
Other budget points include