Budget Update: What you need to know
Below is a summary of the key points from the budget relevant to small businesses...
Times are challenging at the moment, with the uncertainty of the Coronavirus Crisis (COVID-19), Brexit and a whole host of other things going on in the world, it's all putting a strain on our personal and professional lives. For the self-employed and small business owners, this couldn't ring truer, so we’ll be keeping you up to date on the latest and how this applies to your business, read more below...
To support businesses directly affected by COVID-19, the Budget has just announced that a set of measures has been put in place related to costs, cashflow and jobs. See the below summary of key, relevant information provided by the Gov.Uk website:
- The government announced £12 billion of support to provide security and stability for people and businesses
- More information can be found in this Factsheet
- National Insurance Contribution thresholds will increase from £8,632 to £9,500, saving an average employee around £104 a year from April.
- The National Living Wage will increase from £8.21 to £8.72
- The government have set a target for the National Living Wage to reach two-thirds of median earnings and to be extended to workers aged 21 and over by 2024
Specific Business Support
- A review of business rates will be reported in autumn
- Pubs will have a business rates discount of £5,000 off the business rates bills of eligible pubs with a rateable value below £100,000.
- The Employment Allowance for Employer National Insurance Contributions will increase from £3,000 to £4,000. Over half a million businesses will benefit from this reduction to their costs of employment, with an average gain of £850 per year.
- £28m package and up to 10,000 Start-Up Loans to support entrepreneurs and businesses to start
- A £100m scheme will help small businesses to invest in low carbon heating systems, and consulting on introducing a Green Gas Levy to increase biomethane production for the gas grid
- Parents will have a new pay and leave entitlement if babies need to spend extended time in neonatal care
- Additional investment will be made in growth hubs in all regions
- £13m to expand the British Library’s network of Business and Intellectual Property Centres to 21 cities and 18 surrounding local library networks across the UK, including London
Wenta advises that you read the full budget report in order to evaluate the potential impact on your business and customers. Depending on your specific business there may also be information relevant to you regarding Public funding such as NHS; Transport; Government research and Environmental issues. To find out more and stay up to date visit the 'What you need to know' webpage on the Gov.Uk website.
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