Budget Report 2020

This Report, which was written immediately after the Chancellor of the Exchequer delivered his Budget Speech, is intended to provide an overview of the latest announcements and recent measures most likely to affect you or your business. Chancellor Rishi Sunak announced his first Budget, and the first since the UK left the European Union, after a postponement caused by last year… Continue Reading

Budget Report 2020: Budget Highlights

Sunak delivers Budget to meet ‘challenging times’ Chancellor Rishi Sunak delivered his first Budget, and the first since the UK’s departure from the European Union, against the backdrop of the coronavirus outbreak. The Chancellor announced a £30 billion stimulus package to support the economy through coronavirus contagion and pledged to give the NHS wh… Continue Reading

Budget Report 2020: Minimum Wage

Increases in the National Minimum Wage and National Living Wage rates now occur in April each year. Apprentice rates apply to those under 19, or 19 or over and in the first year of their apprenticeship. National Living Wage applies to those aged 25 and over.   Please see the pages below for more information  Introduction Budget Highlights Business Tax Minimum Wage Capital Tax… Continue Reading

Budget Report 2020: Capital Taxes

Capital gains tax (CGT) rates

The current rates of CGT are 10%, to the extent that any income tax basic rate band is available, and 20% thereafter. Higher rates of 18% and 28% apply for certain gains; mainly chargeable gains on residential properties with the exception of any element that qualifies for Private Residence Relief. There are two specific types of disposal which poten… Continue Reading

Budget Report 2020: Duties

Alcohol and tobacco duties

The duty rates remain frozen for beer, spirits, wine and made-wine, still and sparkling cider and perry. The duty rate on all tobacco products will continue to increase by 2% above RPI inflation. The duty rate on hand-rolling tobacco will increase by a further 4%. These rates will have effect from 11 March 2020.

Fuel duty

Fuel duty will be frozen for the 202… Continue Reading

Budget Report 2020: Employment Taxes

National Insurance thresholds

The government has recently announced National Insurance thresholds for 2020/21. Most thresholds will rise with inflation. Two thresholds, however, will rise by 10% from £8,632 to £9,500:

• the primary threshold – which sets the level at which employees start to pay Class 1 National Insurance contributions (NICs)
• the lower profits limit &

… Continue Reading

Budget Report 2020: National Insurance

2020/21 Class 1 (employed) rates

Entitlement to contribution-based benefits for employees retained for earnings between £120 and £183 per week.
The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week. Please see the pages below for more information  Introduction Budget Highlights Business Tax Minimum Wage Capital Taxes Duties Em… Continue Reading

Budget Report 2020: Personal Tax

Pensions changes

The pensions annual allowance (currently £40,000) is the maximum amount of tax-relieved pension savings that can be accrued in a year. However, for those on higher incomes, the annual allowance is reduced by £1 for every £2 that an individual’s ‘adjusted income’ exceeds £150,000, to a minimum annual allowance of £10,000. Adjusted income… Continue Reading

Budget Report 2020: Tax Calendar for 2020/21

Please see the pages below for more information  Introduction Budget Highlights Business Tax Minimum Wage Capital Taxes Duties Employment Taxes National Insurance Personal Tax 2020/21 Tax Calendar Income Tax and Personal Savings Tax and Travel Other Matters… Continue Reading

Budget Report 2020: Income Tax and Personal Savings

The Chancellor announced the following income tax rates and allowances.

Income tax rates and bands

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

Savings income

A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.

Dividend income

Personal a

… Continue Reading