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What are the changes to the UK budget for 2020-2021?

By April 8, 2020 April 24th, 2020 No Comments

A few weeks back the chancellor announced the changes which are being made for the tax year 2020/2021 which starts on the 6th April 2020. Here we highlight the key changes made for businesses and tax purposes.

·         Personal allowance remains the same at £12,500 per year

·         National Insurance threshold increases from £8,632 to £9,500 benefiting up to 31 million people

·         Employment allowance has been increased from £3,000 to £4,000 per year

·         Fuel duty frozen for the 10th year along with a freeze on beer, cider and spirits

·         New pubs discount will be introduced to reduce business rates by £5,000 for eligible pubs with a rate-able value of under £100k

·         Structure & Buildings allowance for corporation tax will increase from 2% to 3%

·         Changes to universal credit including allowing claimants to retain more of their benefits by increasing repayment periods for       advances

·         £28m package and up to 10,000 start up loans to support entrepreneurs and businesses

 

Changes have also been made to apprenticeship pay and the national minimum wage;

 

Hourly pay increases

Tax year 2019/2020

Tax year 2020/2021

Apprenticeships

£3.90

£4.15

Under 18’s

£4.35

£4.56

Age 18-20

£6.15

£6.45

Age 21-24

£7.70

£8.20

Over 25’s

£8.21

£8.72

 

If you have any questions about how these changes affect you then please get in touch at enquiries@cedarhouseaccounting.co.uk

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