Get invite to our events

Get invite to our events

Members News Business Guides Tax & Accounting

What’s coming in the new government’s tax plans?

Picture of Bright Grahame Murray
Bright Grahame Murray 2, March 2020

With the Conservative Party’s election victory in December, businesses now have a clearer idea of what tax changes they can expect to see introduced in April, and subsequently over the life of the new parliament.

Directors and the self-employed can take comfort in the promise not to raise rates of income tax and national insurance contributions (NICs), although their value will be less reassuring if tax thresholds are not increased in line with inflation. There is also going to be no increase in VAT rates.

The level at which NICs start to be paid will be raised from £8,632 to £9,500 from April 2020, with a possible increase to £12,500 by the end of a normal five-year parliament.

There will be a one-year NICs holiday if you hire someone after they have left the armed forces. A further measure will see the employment allowance increased from £3,000 to £4,000.

Companies and business property

Unsurprisingly the previously announced cut in the rate of corporation tax to 17% has been cancelled, with the rate remaining at 19%.

The tax credit for research and development (R&D) expenditure for large companies is going to go up from 12% to 13%, with the definition of R&D reviewed to include investment in cloud computing and data.

Brick and mortar businesses continue to face challenges:

  • Business rates will be reduced, with the government carrying out a fundamental review of the system. The first step will see a further reduction to business rates for retail businesses. A one-third retail discount has already been introduced for 2019/20 and 2020/21.
  • The rate of structures and buildings allowance will be increased from 2% to 3%. This is not as generous as it might seem, because the allowance is only available for properties constructed since 29 October 2018.

Entrepreneurs will be pleased that both the Enterprise Investment Scheme and Seed Enterprise Investment Scheme will continue throughout the new parliament, but a proposed “review and reform” of entrepreneurs’ relief has potentially ominous implications.

BGM will provide an update after the Budget in March.

Recommended Articles

Recommended Articles

Recommended Articles

Submit a Comment

Trusted by 120+ Members & Partners

Become Partner

Start Growing in the UK with PBLINK

You don't have to do business alone. Master the networking and get the most out of B2B tools with Polish Business Link.

Trusted Referrals

120+ Members & Partners, 3k Business Registered in database growing their business in the UK with PBLINK.

Business Network

PBLINK works with a diverse range of entrepreneurs operating in various sectors, but mostly in the Construction, Trade & IT industries.

B2B Support

At PBLINK we can produce a lead-generation plan within the our network and via resources such as Linkedin

B2B Events

Business Events in the Polish Embassy in London, Congress of Polish Entrepreneurs, Construction events and more.