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The 2020 Budget – Overview

Overview

The newly appointed Chancellor Rishi Sunak, delivered his first budget speech, this afternoon.

Promising to boost the economy and get the country through the Coronavirus outbreak.

Changes to Entrepreneurs Relief, bringing down the lifetime allowance, was also on the agenda.

This morning, the governor of the Bank of England, Mark Carney, announced an emergency reduction of interest rates from 0.75% to 0.25%. In an effort to support growth and promote spending.

But how does this affect me and my business, I hear you say?

Due to the Coronavirus outbreak, employees who need to self isolate can claim statutory sick pay as of today. Together with self employed workers, who were not eligible, will be able to claim contributory Employment Support Allowance (ESA) from today.

Self employed workers will be able to defer tax payments over an agreed timeframe. With 2,000 additional, dedicated staff from HMRC to support this.

The Chancellor also spoke to support employers, with a Coronavirus Business Interuption Loan Scheme. This will help to plug any temporary cash losses and allow employers to claim back any statutory sick pay paid out.

Changes to Entrepreneurs Relief, bringing down the lifetime allowance, was also on the agenda.

Changes to National insurance relief for NHS dentists and doctors, saw changes to the tapered relief scheme.

All in all, it was a positive budget, with something for everyone, really promoting business. It is important to note, how smooth the process will be for businesses and dentalpreneurs to liaise with HMRC during this Coronavirus outbreak.

A summary of all the key tax takeaways follows overleaf. We look forward to receiving more detail on all measures announced and expect the Finance Bill to be published on 11 July 2020.

Pennyhills® Dental Accountants?

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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