{"id":1062,"date":"2020-03-16T09:43:49","date_gmt":"2020-03-16T09:43:49","guid":{"rendered":"https:\/\/primal-live.co.uk\/dhco-staging\/?p=1062"},"modified":"2022-06-22T13:23:35","modified_gmt":"2022-06-22T13:23:35","slug":"how-might-the-spring-budget-impact-your-business","status":"publish","type":"post","link":"https:\/\/www.douglashomeandco.co.uk\/how-might-the-spring-budget-impact-your-business\/","title":{"rendered":"How Might the Spring Budget Impact Your Business?"},"content":{"rendered":"<p>The British Government have delivered their Spring Budget for 2020. This will have a number of key implications for businesses, particularly in this time of economic uncertainty\u00a0 arising from the current COVID-19 outbreak. We\u2019ve summarised some of the key points that could affect your business below.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>Coronavirus Action Plan<\/strong><\/h4>\n<p>Rising concern over the spread of coronavirus is likely to have a significant impact on businesses, for example due to self-isolation of staff and a downturn in economic activity in the retail, leisure and hospitality industries. The budget accommodates for this in the following ways:<\/p>\n<ul>\n<li>Anyone who self-isolates will be entitled to statutory sick pay, even if they do not have any symptoms. This will be available from day one of sick leave.<\/li>\n<li>Self-employed workers who are not eligible for statutory sick pay will be entitled to claim contributory Employment Support Allowance.<\/li>\n<li>Businesses with fewer than 250 members of staff will be refunded for two weeks\u2019 sick payments.<\/li>\n<li>Small firms will have access to loans of up to \u00a31.2 million to prevent \u2018business interruption\u2019.<\/li>\n<li>Business rates will be abolished in England for companies that are in the retail, leisure and hospitality sectors, and which have a rateable value less than \u00a351,000.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>Personal Tax, Wages and Pensions<\/strong><\/h4>\n<p>There were relatively few new announcements relating to income tax and VAT, however the following key changes were introduced:<\/p>\n<ul>\n<li>The tax threshold for National Insurance Contributions will increase from \u00a38,632 to \u00a39,500.<\/li>\n<li>There will also be an increase to the thresholds for tapering provisions to the pensions annual allowance.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>Alcohol, Tobacco and Fuel<\/strong><\/h4>\n<p>Fuel duty is set to be frozen again, while the alcohol industry will receive an unanticipated windfall:<\/p>\n<ul>\n<li>Fuel duty will be frozen for the 10<sup>th<\/sup> consecutive year.<\/li>\n<li>Duties on spirits, beer, cider and wine will be frozen.<\/li>\n<li>Business rate discounts for pubs to rise from \u00a31,000 to \u00a35,000 this year.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>Business and Digital<\/strong><\/h4>\n<p>A number of changes will be introduced specifically affecting businesses, as well as planned improvements to broadband connectivity which will affect those in remote locations:<\/p>\n<ul>\n<li>Firms eligible for small business rates relief will receive \u00a33,000 in cash grants.<\/li>\n<li>Structures and Buildings Allowance will increase to 3%.<\/li>\n<li>Research &amp; Development Expenditure Credit (RDEC) will increase to 13%.<\/li>\n<li>Restrictions on Corporate Capital Loss Relief will be introduced.<\/li>\n<li>\u00a35bn was allocated to introduce gigabit-capable broadband into the hardest-to-reach places.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>Entrepreneur\u2019s Relief <\/strong><\/h4>\n<p>A key change to be introduced is a dramatic reduction in the lifetime allowance for Entrepreneur\u2019s Relief:<\/p>\n<ul>\n<li>The lifetime allowance for Entrepreneurs&#8217; Relief will be reduced from \u00a310m to \u00a31m.<\/li>\n<li>This change will come into effect immediately and can, in certain circumstances, impact on transactions prior to 11th March.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>Environment and Energy<\/strong><\/h4>\n<p>A number of changes have been made to financially incentivise sustainable business practices, including those relating to fuel subsidies and plastic packaging:<\/p>\n<ul>\n<li>Plastic packaging tax to come into force from April 2022.<\/li>\n<li>Manufacturers and importers whose products have less than 30% recyclable material will be charged \u00a3200 per tonne.<\/li>\n<li>\u2018Red Diesel\u2019 subsidies for fuel used in off-road vehicles will be scrapped for \u2018most sectors\u2019 in two years\u2019 time, however this will not apply to farmers or rail operators.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>The Economy and Public Finances<\/strong><\/h4>\n<p>The economy is predicted to grow at the slowest rate since 2009, while inflation is forecasted at 1.4%:<\/p>\n<ul>\n<li>The economy is predicted to grow by 1.1% this year, not taking into account the impact of coronavirus. This would be the slowest growth since 2009.<\/li>\n<li>Inflation is forecasted at 1.4% this year, increasing to 1.8% in 2021-2022.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>If you\u2019d like to learn more about how these changes could affect your business, then please get in touch by telephoning the office on 01573 225082 or emailing <a href=\"mailto:mail@dhco.co.uk\">mail@dhco.co.uk<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The British Government have delivered their Spring Budget for 2020. This will have a number of key implications for businesses, particularly in this time of&#8230;<\/p>\n","protected":false},"author":7,"featured_media":1068,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[223,1725],"tags":[1181,1190,1182,1193,1256,1257,1192,1188,1263,1258,1191,1260,1262,1261,1255,1186,1259],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Might the Spring Budget Impact Your Business? - Douglas Home &amp; Co<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.douglashomeandco.co.uk\/how-might-the-spring-budget-impact-your-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Might the Spring Budget Impact Your Business? - Douglas Home &amp; Co\" \/>\n<meta property=\"og:description\" content=\"The British Government have delivered their Spring Budget for 2020. 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