Let’s face it, who would want to be in Rishi Sunak’s shoes right now? Ok, he may have landed one of the most important jobs in the country as chancellor of the exchequer, but having to deliver one of the most important tasks of his job being only one month in? No easy task.
Our predictions for the 2020 Budget which will be delivered by Sunak on the 11 March.
Top headlines – 2020 Budget Predictions
- We predict that infrastructure investment and further investment in the NHS will be high on the agenda
- The recent news of the go-ahead to build the HS2 railway and improvements to the rail network in the North will also make headlines
- Energy efficiency incentives and carbon capture will likely make the top headlines also
Tax changes – 2020 Budget Predictions
Increase of the National Insurance Threshold (NIC)
We already know that the NIC threshold will increase from £8,464 to £9,500 in the next tax year, starting on 6th April 2020.
Reduction in corporation tax rate unlikely
We were hoping for a reduction of corporation tax to 17% from its current level of 19%, but Johnson confirmed during the election campaign that the rate will likely remain as is.
Reduction or loss of the pension tax relief for higher rate taxpayers
There has been much speculation over the last few weeks of the reduction or full removal of the pension tax relief for higher rate tax payers, intended by the government to ”level up’ the opportunity across Britain.
High street businesses and business rates
There is hope that business rates will be reduced to help beleaguered high street small businesses to stave off competition from online competitors and keep our high streets thriving.
Inheritance Tax lobbying
A simplification of the rules and exemptions of Inheritance tax has been called for by a cross-party group of MPs, who are also lobbying for a reduction of inheritance tax from 40 percent to 10 per cent.
Budget 2020 Update
We will be keep you up-to-date in the run up to planned tax changes at the UK Budget on 11th March that could affect you and your business. Contact us if you are looking to get organised before the new tax year on 6 April 2020.