The main business tax announcements in the Spring Budget 2020 are as follows:
Corporation Tax Rates
The corporation tax rate is to remain at the current rate of 19%. It had been due to fall to 17% but this reduction has now been cancelled.
Structures and Building Allowance
From April 2020 the structures and building allowance will increase from 2% to 3%. This is a tax deduction which affects non-residential properties only.
Digital Services Tax
A new tax on the revenues of social media platforms, search engines and online marketplaces is to be introduced. The tax rate is 2% and it is applied where the revenue is derived from a UK user.
The tax only applies to very large companies with UK revenues in excess of £25 million.
Business Rates Relief
For the tax year 2020/21 business rates will be abolished for all eligible businesses in retail, leisure and hospitality sectors with rateable values under £51,000.
Businesses which qualify for the small business rates relief may be eligible for a £3,000 cash grant. We are expecting further details on this announcement.
UPDATE – 18TH MARCH 2020
On 17th March 2020 it was announced that the cash grant available is to be increased from £3,000 to £10,000.
In order to support retailers and leisure businesses certain small companies, which occupy premises with rateable values between £15,000 and £51,000 will be eligible for grants worth up to £25,000.
Assistance with Coronavirus
Any business suffering hardship with outstanding tax liabilities with receive support with their tax affairs. HMRC will offer time to pay arrangements which gives businesses an agreed deferral period to pay over any taxes owed.
The government have also announced available loans to be made available. We are expecting further details on this announcement.
Statutory sick pay (SSP) will be refunded to small and medium sized businesses. The refund will be limited to two weeks SSP per an employee.
Other budget announcements:
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