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  • Writer's pictureGreenline Accountants

2020 Budget - Preview

Updated: Jun 26, 2023

Rishi Sunak is set to deliver his first budget tomorrow against a backdrop of panic and uncertainty caused by the sliding oil prices and COVID-19.

While this may mean that the maiden budget of Boris Johnson's new government is slightly tempered from what we were initially anticipating in January, there will still be a few key things to look out for.

We will almost certainly see:-

1. Increase in employment allowance from £3,000 to £4,000, meaning employers will gain an extra £1,000 relief on their Employer National Insurance Contributions

2. An end to the freeze of fuel duty increases - the sliding price of oil gives the chancellor a perfect opportunity to make a grab for extra fuel duty, which had been planned anyway as part of a drive towards impeding climate change

3. Reform of entrepreneurs relief - either a significant reduction in the life time allowance or even a possible abolition of the relief entirely

4. National Insurance threshold increase to £9,500 - Part o fthe Tory manifesto to give a Tax Cut to 31 million workers, the idea being this will save everyone about £100 a year

5. Mr Sunak has apparently ruled out restricting pension relief for those earning more than £50,000 a year in this budget, but again it's something to keep an eye on.

Check back here tomorrow, 11th March 2020, for a detailed summary of the budget and the changes that are most likely to impact you and your business.


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