News
Budget 2020 – Headlines
Income Tax
- There were no changes to income tax rates or to the basic personal allowance.
- The income limit for the age-related married couples allowance increased from £29,600 to £30,200.
- The maximum amount married couple’s allowance for those born before 6 April 1935 increased to £9,075.
- The minimum amount of a married couple’s allowance increased to £3,510.
- The blind person’s allowance increased to £2,500.
National Insurance
- The Employers NIC Allowance increased to £4,000.
- The Employee Primary Threshold increases to £9,500.
- For self-employed taxpayers, the threshold at which Class 2 NICs is payable increased to £6,475 and the Class 4 threshold increased to £9,500.
June 2020 – Reinstate your VAT Direct Debits
The deferral of VAT payments under the government’s COVID-19 support package ends on 30 June 2020. Businesses who have taken advantage of this should now reinstate their VAT direct debits in time for their first post 30 June VAT payment date.
Useful Link
https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19#support-for-businesses-through-deferring-vat-and-income-tax-payments
April 2020 – New Rules for Filing and Paying CGT on UK Property
From the 6th April 2020, CGT on all UK residential property sales must be reported by UK residents. A payment on account, for the tax liability, should be made to HMRC within 30 days on completion.
Useful Link
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax
Tax – Rates, Allowances & Information | ||||||
Flat Rate For Unincorporated Businesses 2020/21 | ||||||
| Motoring Expenses | First 10,000 business miles | 45p per mile | ||||
| Additional Business Miles | 25p per mile | |||||
| Business use of home | 25-50 hours use | £10 per month | ||||
| 15-100 hours use | £18 per month | |||||
| 101+ hours use | £26 per month | |||||
| 2020/21 | 2019/20 | |
| Personal Allowance | £12,500 | £12,500 |
| Main Rates | |
| Basic rate | 20% |
| Higher rate | 40% |
| Additional rate | 45% |
| Savings Rates | |
| Starting rate for savings | 0% |
| Savings basic rate | 20% |
| Savings higher rate | 40% |
| Savings additional rate | 45% |
| Dividend Rates | |
| Dividend ordinary rate – for dividends otherwise taxable at the basic rate | 7.50% |
| Dividend upper rate – for dividends otherwise taxable at the higher rate | 32.50% |
| Dividend additional rate – for dividends otherwise taxable at the additional rate |