Originally written by Timothy Adler on Small Business
Rishi Sunak is eyeing raising corporation tax from 19 per cent to 24 per cent to help pay down Britain’s COVID-19 debt.
Such a move would raise £12bn next year, rising to £17bn in 2023-24, according to The Sunday Times.
Sunak will argue that 24 per cent is the global average tax rate for business and would still be lower than other European economies such as France, Germany, Italy and Spain.
>See also: Bank of England eyes Working Capital Jobs Retention Scheme
The corporation tax hike would be part of a £30bn tax squeeze on businesses, pensions and foreign aid, to help pay off the estimated £391bn the government will spend trying to stave off the economic consequences of Covid in 2020-21 alone.
Increase dividend tax
Meanwhile, the Treasury is also looking at increasing the tax rate for company directors who pay themselves in dividends – currently 7.5 per cent compared to a basic income tax rate of 20 per cent. Such a move would especially hurt sole traders and others who have already missed out on government COVID-19 financial support.
The Tories catcalled a proposal by Jeremy Corbyn’s Labour at the last election to tax dividends in line with
Tag Archive for Budget 2020
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Rishi Sunak Summer Statement what it means for small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
What does the Summer Statement mean for small business?
Chancellor Rishi Sunak has announced a package of measures to help small businesses survive the coronavirus pandemic, as the second phase of government action.
Mr Sunak unveiled cash grants of £1,000 for each furloughed employee a business takes back, a new £2bn jobs scheme aimed at bringing in young people into work, and VAT being slashed to 5 per cent for hospitality and attractions businesses.
“It will give businesses the confidence to retrain and hire this autumn,” Mr Sunak announced in the House of Commons this afternoon.
Job Retention Bonus
Mr Sunak announced a £9bn initiative to reward businesses that bring furloughed employees back into work.
Any small business that takes back a furloughed employee will be given a £1,000 grant for each worker, providing they are still in employment by the end of January. Workers must have been continuously employed and earn an average of more than £520 per month in November, December and January.
Mr Sunak said: “If you stand by your workers, then we will stand by you.”
Reacting to the announcement, Howard Kennedy head of employment law Jane Amphlett said: “The bonus is likely to provide an incentive for employers
Hot Business News Today
Rishi Sunak Summer Statement what it means for small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
What does the Summer Statement mean for small business?
Chancellor Rishi Sunak has announced a package of measures to help small businesses survive the coronavirus pandemic, as the second phase of government action.
Mr Sunak unveiled cash grants of £1,000 for each furloughed employee a business takes back, a new £2bn jobs scheme aimed at bringing in young people into work, and VAT being slashed to 5 per cent for hospitality and attractions businesses.
“It will give businesses the confidence to retrain and hire this autumn,” Mr Sunak announced in the House of Commons this afternoon.
Job Retention Bonus
Mr Sunak announced a £9bn initiative to reward businesses that bring furloughed employees back into work.
Any small business that takes back a furloughed employee will be given a £1,000 grant for each worker, providing they are still in employment by January. The minimum wage of each employee should be at least £520 a month.
Mr Sunak said: “If you stand by your workers, then we will stand by you.”
Kickstart jobs scheme
As expected, chancellor Rishi Sunak has announced a £2bn scheme for small business owners to hire young people as part of his Summer Statement.
The new Kickstart scheme will help half
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Budget 2020 what it means for small business – analysis and live blog
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: Chancellor Rishi Sunak has announced a £30bn spending package to help mitigate the impact of the coronavirus outbreak.
Government to cover statutory sick pay for SMEs
Statutory sick pay will be available to all those advised to self-isolate from the virus. The government will refund the cost of statutory sick pay for up to 14 days to small- and medium-sized businesses at a cost of £2bn. This will apply to businesses with fewer than 250 employees.
Announcing his Budget this afternoon, the chancellor acknowledged coronavirus would cause “temporary disruption” to the economy.
Jonathan Richards, CEO and founder of Breathe, added: “As a small business owner, it’s reassuring that the government will cover the strain caused by sick pay, as well as offering significant loans and cash injections to UK small businesses.
Coronavirus Business Interruption Loan Scheme
A “Coronavirus Business Interruption Loan Scheme” will support up to a further £1bn lending to smaller businesses. The government will guarantee bank loans to small businesses on amounts of up to £1.2m. The government will cover bank losses of up to 80pc.
Business rates to be scrapped for certain businesses…
Business rates will be abolished altogether for smaller firms in retail, leisure and hospitality
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Don’t scrap entrepreneurs’ relief, argue small firms
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small business has asked chancellor Rishi Sunak not to renege on the Conservative election manifesto promise to reform, not scrap entrepreneurs’ relief.
The Treasury is said to want to abolish the £2.7bn tax break in the March 11 Budget in order to fund pay for nurses and police officers and for projects that could help “level up” the north and the south.
The relief allows business owners to pay a 10 per cent rate of capital gains tax when they sell their companies, compared with the usual 20 per cent. It usually applies to gains of up to £10m. Entrepreneurs’ relief was introduced in 2008 by Alistair Darling to encourage people to start or back new companies.
The cost of the relief has risen from £427m in 2008-09 to £2.7bn in 2018-19.
However, the Federation of Small Businesses, has hit back at the Sunday Times report that the chancellor will scrap, not reform, entrepreneurs’ relief. Previously, former chancellor Sajid Javid was mulling scrapping entrepreneurs’ relief for start-ups but keeping it on for existing business.
Only around 10 per cent of people who claim entrepreneurs’ relief are selling businesses worth more than £1m, says the FSB. And the vast