Chancellor Rishi Sunak’s first Budget was dominated by the threat of Coronavirus and his measures did include some positive news to support small businesses through the crisis. Here’s a breakdown of some of the key points that could affect your business.
To support the country through the outbreak, the Chancellor announced the following measures:
- A 100% tax relief to businesses in England with a rateable value of less than £51,000, who are in the retail, leisure and hospitality sectors.
- The Self-employed will be able to claim sick pay through Employment Support Allowance (ESA).
- Employees will be able to claim SSP from day one of their illness.
- Employers will be able to reclaim SSP from the government.
- Small businesses with rateable values below £12,000 (those eligible for small business rates relief) will benefit from a cash grant of £3,000.
- Details of how the £3,000 grant will work are still to be released, but early indications are that the funding will be given to the local authorities.
- The scheme is only available in England as the devolved administrations in Scotland, Wales and Northern Ireland have different business rates arrangements.
For those who’s businesses have been affected by the outbreak of Coronavirus there is support available from the Coronavirus Business Interruption Loan Scheme:
- There will be an increase to the Employers NI Allowance from £3000 to £4000.
- The NI thresholds for Class 1 (employees) and Class 4 (self-employed) will be increased to £9500.
Other key announcements
- Corporation tax is being held at 19%, rather than decreasing to 17% as announced by a previous government.
- The National Minimum Wage will be rising to £8.72 from April 2020 for those aged 25 years and over, with the goal of reaching £10.50 by 2024.
- As expected, the Chancellor will be going ahead with IR35 payroll reforms from 6th April 2020.
All of us at Turas Accountants are working hard at establishing the detail of the Chancellor’s announcements. If you would like advice on how it might affect your business, give us a call on 01952 882434 or email [email protected] and we would be happy to help.