Budget offers welcome relief amid COVID-19, says leading accountant

Chancellor Rishi Sunak announced a raft of measures designed to help businesses and individuals amid the coronavirus outbreak.

Key initiatives include:

Business rate discount extension – small businesses won’t have to pay any rates for 2020-2021. There are also new grants and loans available to help businesses mitigate the effect of coronavirus-related losses
Extended access to Statutory Sick Pay – the Treasury will underwrite this to reduce the burden on businesses. Anyone diagnosed, self-isolating or caring for a relative will be eligible, with no sick note required
Tax payment delays – the Treasury is expanding the Time to Pay system, so companies and sole traders can defer tax payments without incurring penalties or interest

Commenting on the Budget, Dr Anjulika Salhan, Director at Salhan Accountants, said:

“The Budget has taken clear action to support businesses and workers affected by coronavirus, and we welcome the measures on behalf of our clients and as an employer. Particularly, the business rate discounts, Statutory Sick Pay measures and tax payment delays will help business weather the crisis.”

Other noteworthy Budget announcements include:

Increase in Research and Development Expenditure Credit (RDEC) – the tax credit rate will rise by 1% to 13% from 1 April 2020
Reduction in the Entrepreneurs’ Relief lifetime limit – from £10 million to £1 million with immediate effect
Increase in Employment Allowance – from £3,000 to £4,000, with effect from 6 April 2020
Increase in the Structures and Buildings Allowance rate – from 2% to 3%, with effect from 1 April 2020 for corporation tax and 6 April 2020 for income tax
Increase to National Insurance thresholds – most are rising with inflation, but two (primary threshold and lower profits limit) will rise by 10%
Introduction of off-payroll working for the private sector – the Budget confirmed these changes (also known as IR35) are being introduced from 6 April 2020

Dr Anjulika Salhan said: “We welcome the increases in Research and Development Expenditure Credit, Employment Allowance and Structures and Buildings Allowance – they will help British businesses boost their competitiveness in a post-Brexit economy. We urge the Government to continue implementing measures that increase Britain’s agility and attractiveness to investors.”

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Notes for editors

Salhan Accountants is a Birmingham-based accountancy firm with offices in the West Midlands and London. It offers a wide range of personal and business services and has won numerous awards. Its most recent accolade was at the English Women’s Awards, where Director Dr Anjulika Salhan won in the Accounting and Finance category.

The full Salhan 2020 Budget Report is available here.

Media enquiries

Dr Anjulika Salhan

0121 455 7475

anjulikasalhan@salhanaccountants.co.uk