Key Points from the March Budget

Key points for small businesses from todays 2020 Budget.

• The cost of statutory sick pay for up to 14 days will be refunded by the government in full.
• Any company eligible for small business rates relief will be allowed a £3,000 cash grant.
• Business rates will be abolished for this year for retailers.
• Corporation tax rate to remain at 19%.
• No national insurance contributions on the first £9,500 of your earnings – up from £8,632 at the moment.
• The Employment Allowance is increasing from £3,000 to £4,000 in 2020/21 tax year.
• If you sell your business, subject to many criteria, you may benefit from Entrepreneurs Relief. This reduces the capital gains tax rate on the gain on sale of business from 20% to 10%. This has been restricted to only apply to the first £1M of gains from today (was first £10M of gains).
• 100% Capital Allowances on zero emission cars was due to end April 2021 now due to end April 2025.
• No VAT on digital publications from 1st December 2020. To apply to all books, magazines and publications.
• R&D tax credit increased from 12% to 13%.
• Structures and Buildings Allowance increased from 2% to 3%.