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.

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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. 


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Tax – Rates, Allowances  & Information


Flat Rate For Unincorporated Businesses 2020/21

Motoring Expenses First 10,000 business miles 45p per mile    
 Additional Business Miles25p 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

Personal Allowance £12,500£12,500
Main Rates 
Basic rate20%
Higher rate40%
Additional rate45%
Savings Rates 
Starting rate for savings0%
Savings basic rate20%
Savings higher rate40%
Savings additional rate45%
Dividend Rates 
Dividend ordinary rate – for dividends otherwise taxable at the basic rate7.50%
Dividend upper rate – for dividends otherwise taxable at the higher rate32.50%
Dividend additional rate – for dividends otherwise taxable at the additional rate

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