• Business rates will be abolished for small businesses in the retail, leisure and hospitality industries with a Rateable Value of up to £51,000 until the end of 2020
This will be a potential saving of up to £25,000 per year for independent restaurants, cafés & food businesses.
• Pubs with a Rateable Value get a business rate discount of £5,000
This is up from £1,000 therefore saving them £4,000
• A £3,000 cash grant for businesses eligible for small business rates relief
Small business rates relief is available for those with a rateable value below £15k
• Employees who self-isolate will now be entitled to Statutory Sick Pay (SSP) from day one
Previously employees were only entitled to SSP after 3 days of being sick. SSP is paid to employees at £94.25 per week
• The government will now refund SSP paid by small businesses to employees up to a maximum of 14 days.
Previously all SSP was paid by businesses without any payment from Government. This change means that businesses can claim back £118.50 per employee
• Self Employed people who self-isolate will now be entitled to claim Employment Support Allowance (ESA) from day 1 instead of day 5
ESA is £57.90 a week if you’re aged under 25 and up to £73.10 if you’re aged 25 or over. You need to have paid 2 years NI contributions to be eligible.
• The National Insurance threshold will be raised from £8,632 to £9,500 per year from April 5th
Those earning more than £9,500 will be, on average, £85 a year better off
• Fuel duty has been frozen.
• The tax on Red Diesel has remained at 11.1p per litre, compared with 57.7p for standard diesel
This will increase for most businesses in 2 years time
• Beer, wine and cider duty rise will be cancelled.
• A new plastic packaging tax from April 2022 will charge manufacturers and importers £200 per tonne on packaging made of less than 30 percent recycled plastic.
This could see the price of plastic packaging rise from April 2022
Other Business Support
• A “Coronavirus Business Interruption Loan Scheme” will support up to a further £1bn lending to small businesses. The government will guarantee bank loans on amounts up to £1.2m. The government will cover bank losses up to 80%.
This is a new initiative and details are still unclear as to who this is for.
• Scaling up of HMRC’s ‘Time to Pay’ service. Including a new helpline so businesses and the self employed can arrange to defer tax payments.
We are awaiting further clarification on this.