What does the Budget mean for my business?

Rishi Sunak has unveiled his first Budget as Chancellor, but what does it mean for your business? We’ve summarised the key points affecting UK businesses in the April 2020 Budget.

Support for businesses affected by Coronavirus

Whilst the health and social impact of coronavirus is obvious, the effects of a workforce absent en masse, along with reduced production, orders, and sales is likely to hit businesses hard,

The government has responded to the financial threat posed to smaller businesses by COVID-19 Coronavirus with a series of measures.

The steps include financial support for those facing lost income due to isolation measures. It encourages those who may be unwell to stay home, rather than risking further spread of the virus.

To help curb the spread of the virus, many public events are being cancelled which unfortunately presents problems for those reliant on them as a source of income.

accounting services for sole traders

With this in mind, the Chancellor announced that business rates for retail, leisure and hospitality firms would be abolished in England.

The Budget also sets out a response aimed at other businesses likely to be affected by Coronavirus, offering business interruption loans of up to £1.2 million.

National Insurance changes for employers and earners

The government also put forward proposals designed to encourage employment by giving employers more attractive National Insurance allowances.

The new Chancellor’s budget also addresses NI for earners, increasing the threshold from £8,632 to £9,500.

Tax overhauled for entrepreneurs

Entrepreneurs disposing of some or all of their businesses have previously enjoyed a reduced rate of Capital Gains Tax at 10%. Known as Entrepreneur’s Relief, it was designed to encourage more people to launch their own business, but it was described by Sunak as ineffective.

Rather than scrap the scheme as some were calling for, the Chancellor instead announced plans to reduce the maximum amount of relief allowed from £10m to £1m.

VAT on digital publications scrapped

As of December 2020, VAT will no longer be charged for digital publications such as newspapers or books. It’s great news for consumers, as well as for businesses whose VAT bill is incurred by the sale of digital products. It will certainly make it easier to sell digital services in the UK from inside and outside the UK.

Combatting climate change through business

Sustainable business has been on the radar for a while, driven by consumer demand as much as government regulation. The spring 2020 Budget introduces further measures designed to combat climate change and protect the environment.

Infrastructure

UK infrastructure will receive considerable funding, improving areas such as communications and the road network. This is good news for business owners who rely heavily on these for customer accessibility and logistics.

For more information designed to help you in your business, check out our resources hub, or use the Live Chat button screen to find out more.

About The Author

Elizabeth Hughes

An SEO Copywriter and Content Creator. After more than ten years of enjoying myself by turning difficult subjects into elegant, simple language, I still can't believe I get paid for this.

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