A summary of the situation
The current health situation
- 14 days of Statutory Sick Pay per employee to be met by the Government in full.
- Business properties with rateable value less than £51,000 will pay no Business Rates.
- The amount of the Cash Grant that was going to be £3,000 to certain Small Businesses, delivered by Local Authorities, is now to be £10,000.
- The proposed changes to IR35 which were to start from 6th April 2020 will be deferred for one year.
- Interruption Loans for Businesses will be provided by the Government.
- The mechanism for delivery of Government help to business is not as yet in place. Further guidance on this point will follow as soon as possible.
Rates of VAT
- Flat Rates the same as last year.
- Annual Turnover limited for registration remaining at £85,000 per annum.
- No VAT on Digital Publications.
Corporation Tax and Capital Allowances
- Rate of Corporation Tax remains at 19%.
- The entire cost of additions to plant and machinery can normally be written off by Small Business against their profits.
- Up till 31st December 2020 the maximum allowances you can claim are £1m per annum.
- From 1st January 2021 it reduced to £200,000 per annum.
- The full cost of Electric cars can be subtracted from your business profits for tax purposes.
Stamp Duty Land Tax
- £0-125,000: 0%
- £125,000-£250,000: 2%
- £250,000-925,000: 5%
- £925,000-£1.5m: 10%
- £1.5m-: 12%
These Rates apply to England and Northern Ireland only. Scotland and Wales have different Rates. There are surcharges for properties other than your main residence.
* From 1st April 2021 there will be a 2% surcharge on residential properties purchased by Non UK Residents.
- Earnings up to £9,500 per annum are free of NIC.
- Self Employed Business profits up to £9,500 per annum are free of NIC.
- Class 2 NIC for Self Employed now £3.08 per week.
- Voluntary National Insurance Contributions are £15.30 per week.
- Employee National Insurance rate 12%, and Employer National Insurance rate 13.8%.
- Employment Allowance now £4,000 per annum (was £3,000).
- There are no changes to Inheritance Tax.
- Estates are charged to tax at 40% on the excess over £325,000.
Capital Gains Tax
- No significant changes to Capital Gains Tax rates.
- Entrepreneurs Relief lifetime limit reduced to £1m.
No changes to Income Tax Rates or Tax Bands in England.
H M Revenue and Customs Administration
- If you have problems paying your taxes you can call the HMRC Helpline, 0800 0159 559.
- Due to pressure on H M Revenue and Customs currently, it seems most likely that all functions carried out by human beings may be significantly delayed. Please bear this in mind if you are waiting for a decision on anything.
– By Stephen Handley, FCCA