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