The 2020 Budget: How does it effect and make a difference to my small business and me?
So the new budget has just been released, how will this affect you and your small business?
What protection will be in place for your small business and self-employed people during this outbreak of coronavirus. Will I suffer if staff are off Ill? What if I have to close? What if my income drops?
Read through the following points from the budget put together from founder of the PSBA Laura Steele aimed at providing key elements of the budget that effect your small businesses and those who are self employed.
Statutory sick pay paid from day 1 rather than day 4, this will also be paid for those advised to self-isolate even if they are not yet displaying symptoms of coronavirus. A sick note can be provided over the phone via 111 to avoid delays and risk of contamination.
But of course, not everyone is eligible for statutory sick pay I hear you say… well this is what the new plan is for you, the government vow to make it quicker and easier to claim benefits from day 1 rather than day 8. They are also removing the income floor for universal credit and relaxing the requirement to visit the job centre, everything can be done online and by phone.
A £500 million hardship fund distributed to local councils to support communities and individuals.
More on supporting businesses during this period, particularly small and micro enterprises who are expected to be hit the hardest during the outbreak.
For businesses with fewer than 250 employees (that’s all us!) the cost of providing statutory sick pay to any employee off work for 14 days will be refunded by the government in full.
They have also asked HMRC to defer taxes over an agreed period of time for certain situations.
The government introduces a new Coronavirus loan scheme to assist businesses with the cash flow problems they may face during this period of uncertainty, the government will guarantee these loans up to 80% for amounts up to £1.2 million.
As per the conservative party manifesto they pledged to reduce business rates for businesses with a rateable value of less than £51,000 would have an increase in discount of 51% but they have gone further toabolish business rates altogether for all businesses under the £51,000 threshold for one year.
They have introduced a £3000 cash grant per business to any businesses qualifying under the small business rates relief scheme, injecting £2 billion pounds into small and micro enterprises! WOW!
National insurance threshold to be raised to £9,500 from £8,632, providing a tax cut for 31m people. And the National Living Wage to be raised to over £10.50 an hour.
For small businesses in the food, drink and alcohol industry, some great news for you! Part of the government’s plan for future prosperity in an industry which the chancellor claims is an integral part of the community, I quite agree!
The planned increase in spirits duty cancelled! The business rates discount for pubs increased from £1000 to £5000, the planned rise in beer duty also cancelled, duties for cider and wine duties has also been frozen. For the second time in 20 years all duties on alcohol are frozen – will we just be drinking our way through a viral crisis then? Sounds good to me!
Now cars! We all have them, company cars, personal cars and for another year fuel duty has also been frozen so we won’t be seeing a rise there.
Entrepreneurs relief – in line with the FSB advice and guidance this has been reduced from the lifetime limit of £10m to £1m. This leaves 80% of entrepreneurs unaffected.
An Increase in employment allowance to £4000 up by a third.
What are your thoughts? Will this make a difference to you and your business? Let us know your thoughts!