UK businesses to receive tax relief in 2020

UK businesses to receive tax relief in 2020

To help businesses tackle the growing crisis due to the coronavirus pandemic the Chancellor Sunak announced a fiscal stimulus of £30bn, including welfare and business support, sick-pay changes and local assistance.

Coronavirus

To help businesses tackle the growing crisis due to the coronavirus pandemic the Chancellor Sunak announced a fiscal stimulus of £30bn, including welfare and business support, sick-pay changes and local assistance.

Business Support

Small businesses with fewer than 250 employees would be able to claim back Statutory Sick Pay for up to 2 weeks for all the employees who are sick with the novel COVID-19 virus or are self-isolating based on the government’s guidance.
Eligible small retail, leisure and hospitality businesses with a rateable value of £51,000 are set to be exempt from paying business rates in the next financial year. Small and medium-sized business would be provided an option to receive up to £5mln through a government-backed loan scheme, with an option of 6 months free of interest.
Any company eligible for small business rates relief will be allowed a £3,000 cash grant.

Personal Finance and Other Taxes

National insurance threshold is set to rise from £8,632 to £9,500 per year.
Corporation tax is frozen at 19%, which signals a reversal of the previously planned cut to 17%. Entrepreneurs’ relief lifetime limit is to be cut from £10m to £1m.

From 1 April 2021 all non-UK resident buyers would have to pay an additional 2% surcharge on top of any stamp duty already payable on the purchase. However, buyers who become UK residents after the purchase of the property may be able to claim back such surcharge

From April 2021 a new plastic-packaging tax will be imposed on non-recyclable materials. Electric cars, motor vans, motorbikes and taxis will receive tax breaks.

ORACLE CAPITAL GROUP pro-actively monitors UK tax changes and advises its clients on any impact that may result as a result of such changes. Our company has been providing accounting services for over ten years. We assisted many successful businesses in the UK. We pride ourselves on the ability to efficiently solve business problems, ensuring our clients’ business growth.

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