Today (11th March) the Chancellor of the Exchequer, Rishi Sunak, announced the government’s spending and taxation plans for the coming year.
Besides various measures announced to combat the economic impact of the “coronavirus”, the Budget covered everything from changes in welfare to changes in personal finance (which I have focused on in this post).
If you have any questions about how these new measures could benefit you or your family please do not hesitate to Contact us.
Personal taxation
- The threshold at which National Insurance Contributions start will increase from £8,632 to £9,500
- This will make workers earning over £9,500 per year better off by around £85 per year on average
- No changes to income tax were announced
Business
- Firms with fewer than 250 staff will be able to reclaim up to two weeks of statutory sick pay for staff affected by the coronavirus
- Small firms will be able to access “business interruption” loans
- Various changes to business rates were announced, but only for certain sectors
Savings and Investments
- The Junior ISA limit will increase significantly, to £9,000 per year
- No changes to ISA contribution limits were announced, leaving the total limit at £20,000 per year
- Rules surrounding the tapered annual allowance will be changed, resulting in fewer people being subject to the tapered allowance (although those who are still subject to it could see a reduction in the allowance available)
Our local area
- A civil service hub will be opened in the North East of England
- £800M for carbon capture/storage projects was announced, which will create jobs in various areas across the UK including Teesside
