Budget day 2020 is coming!
The date is now set for the next Budget
The treasury has announced that the next budget will be presented by the Chancellor Sajid Javid on Wednesday 11th March 2020.
In recent years, the main Budget has been held in the Autumn.
But you may recall that the last Autumn Budget in 2019 was postponed due to pre-election uncertainties. Everyone was far more concerned about Brexit at the time which was interfering with just about everything.
Now that our government has a significant working majority, those uncertainties have been removed which is probably a relief to a great many people, myself included.
Now at last the government can start to attend to other matters that need to be resolved for the tax year 2020-21 – certain tax allowances for example can now be finalised.
It is even more difficult than usual to predict what the Chancellor proposes to include in this budget.
During the recent election campaigning, Boris Johnson did promise that none of the major taxes would be increased. He also announced that the proposed decrease in Corporation Tax from 19% to 17% from April 2020 would likely be deferred.
However, if there to be any increases in tax my money would be on Capital Gains Tax. Watch out Landlords…..again!
But hopefully there will be measures to support business owners as we transition through the EU withdrawal process.
Certainly, there should be confirmation that UK businesses in receipt of EU funding will continue to receive equivalent funding from the government once the EU funding tap is turned off.
Due to the possible disruption in supply lines from the end of this month – when the transition away from the EU begins – it would be helpful if the government close to include supportive changes in the budget that help UK businesses to maintain their profitability and cash flow.
Parliamentary committees will need to get their skates on and resolve any debate on budget clauses as quickly as possible as there is less than 30 days between 11 March and the end of the tax year – 5 April 2020.
We will be reporting on significant changes by blog as usual immediately following the budget.
Until then, we can probably rest easy that income tax rates at least are unlikely to be increased.
Apart from changes in the budget I did hear recently that a decrease in interest rates may be on the cards as well.
Time will tell………what an exciting time