The 2020 Budget – Business Tax

Deferral of tax payments

Business owners will be able to defer tax payment over an agreed period of time from today. There will be a dedicated helpline with 2,000 staff standing ready to help, due to the Coronavirus outbreak.

Coronavirus Business Interruption Loan Scheme

This loan scheme is set up to help small business owners with any cashflow isssues they may be facing. Offering a generous guarantee on those loans, up to £5m, covering up to 80% of losses with no fees to the bank.

Check you business rateable value here:
https://www.gov.uk/correct-your-business-rates

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Statutory Sick Pay (SSP) for Business

For businesses with less than 250 employees, they can claim a full refund from the government, for the cost of providing SSP to employees off of work, due to Coronavirus, for 14 days.

Employment Allowance

Will increase from £3,000 to £4,000, from 6 April 2020.

Cash Grants

For the business who claim Small Buiness Rates Relief (SBRR) a £10,000 cash grant will be available and £25,000 cash grant for businesses in the hospitality and leisure sectors, like pubs.

Corporation tax

Will remain at the rate of 19% from 6 April 2020.

Research and Development

The R&D expenditure credit will increase from 12% to 13%.

The Job Retention Scheme

Taxable grants will cover 80% of your employee wage bill, up to a maximum of £2,500 per month per employee.

VAT Holiday

Business will be able to defer VAT liability from June 2020 until January 2021.

Self Assessment Holiday

The July 2020 POA will be deferred until January 2021.

VAT on digital e-books, journals, newspapers

Will be 0% from 1 December 2020, so they are in line with paper formats, in time for Christmas.

Business rates Holiday

Business rates will be scrapped with a retail rateable value of less than £51,000 for 12 months. Including businesses in the retail, hospitality and leisure industries.

You can check your rateable value here:

https://www.gov.uk/correct-your-business-rates

About Pennyhills®

London based Accountants specialising in accounting and tax solutions for Entrepreneurs, with their businesses, across the UK

We are a Silver-status partner with Xero and our practice regulated by the Association of Chartered Certified Accountants (ACCA).

We are authorised by ACCA to carry out a range of investment activities.

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