Wouldn’t it help to know exactly which aspects of the 2020 Government Budget are going to affect you?
These are our key take backs for personal and business finances, and how they may be connected to our government’s strategy in the face of Coronavirus.
Changes to Personal Finance
National Insurance Threshold to Increase
NI will increase to £9,500 for both employed and self-employed earners from April 2020. Typical employees will save around £104 per year.
Bank of England Interest Rates to be reduced from 0.75% to 0.1%.
This is to protect the UK economy from the impacts of Coronavirus. Both the reduction in base rate, plus lower swap rates, will lead to even more affordable mortgage products.
Changes to Business Finance
National Living Rate to increase
This means a sharp increase in expenditure for staff wages which may put pressure on some employers.
Entrepreneurs Relief to be reduced
The life time allowance will be reduced from £10m to £1m. This brings into question the plans for business growth among our entrepreneurs and in particular preparations for business sales and disposals.
R&D Expenditure credits to increase
Could you be investing more in Research & Development? With credits to increase to 13% it’s worth some thought.
Employment allowance to increase
The employment allowance is set to rise to £4,000, having an immediate impact on businesses who pay employers national insurance contributions.