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DIARY DATES OF MAIN TAX EVENTS APRIL/MAY 2020

Tax Diary

Date What’s Due 01/04/20 Corporation tax for year to 30/06/19 unless quarterly instalments apply 06/04/20 Start of 2020/21 tax year 19/04/20 PAYE & NIC deductions, and CIS return and tax, for month to 05/04/20 (due 22/04 if you pay electronically) 30/04/20 VAT for Returns ended 29/02/20 (due 07/04 if paid electronically, 12/04 if paid by […]

STRUCTURES AND BUILDINGS ALLOWANCE INCREASED TO 3%

Budget 2020

In the October 2018 Budget a new tax relief was introduced for the cost of construction or renovation of commercial buildings and structures.  As announced in the Conservative Party manifesto the original 2% straight line allowance is to be increased to 3% from 1 April 2020 for companies, 6 April 2020 for unincorporated businesses.

COMPANY TAX RATE FROZEN AT 19%

Budget 2020

As previously announced the corporation tax rate is to remain at 19% for the time being. It was scheduled to reduce to 17% from 1 April 2020.

NIC CHANGES

Budget 2020

Employees and the self-employed will not pay national insurance contributions (NIC) on the first £9,500 of earnings from 2020/21, a significant increase from the £8,632 limit in 2019/20. Note that employers will be required to pay 13.8% on earnings over £169 per week, £8,788 per annum. The employment allowance that can be set against employers NIC […]

NO CHANGES TO INCOME TAX RATES

Budget 2020

The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over £150,000. There had again been rumours that the dividend rate might be increased, but dividends continue to be taxed at 7.5%, 32.5% and then 38.1%, depending upon whether the dividends […]

MORE RATES RELIEF FOR SMALL BUSINESSES

Budget 2020

There has again been much lobbying from the small business sector to reduce business rates to enable traditional retailers, in particular, to compete with internet traders. The Chancellor announced a long term review of the future of business rates, but in the meantime there are some very welcome measures to assist small businesses. The 100% business […]

STATUTORY SICK PAY (SSP) RELIEF

Budget 2020

The Government are predicting that up to 20% of the workforce may be unable to work due to the virus at any one time. It had already been announced that employees would be entitled to SSP from day 1 not day 4. It was announced in the Budget that the Government will fully reimburse employers […]

R&D TAX CREDIT CHANGES

Budget 2020

The Conservative Party manifesto also included a promise to increase R&D expenditure relief for non-SMEs from 12% to 13% and this was confirmed in the March Budget. However, a measure originally announced in the 2018 Budget and consulted on in 2019 will limit the amount of repayable R&D tax credit for SMEs to three times […]

CAPITAL GAINS ENTREPRENEURS’ RELIEF RESTRICTED

Budget 2020

There were many rumours in the run-up to the Budget that CGT entrepreneurs’ relief that allows certain business owners to pay just 10% tax on disposal would be abolished. Rather than abolish the relief the Chancellor has announced that from 11 March 2020 onwards the relief will only be available against the first £1 million […]

STATE BENEFITS INCREASED

Budget 2020

Many State Benefits have been frozen, or increases limited, for a number of years. The Government have however decided to increase many State Benefits from 2020/21 including Child Benefit. The amount payable in respect of the oldest child has been increased to £21.05 and £13.95 for each subsequent child. Note however that you may have […]