Budget 2020: My Predictions For An Interesting Announcement
The government's first budget ...
Posted by Roger Eddowes on 09/03/2020 @ 8:00AM
Rishi Sunak will announce Budget 2020 on Wednesday and we can expect some interesting announcements, especially considering the ongoing trade talks with the European Union and the threat from the Coronavirus outbreak ...
Watch out for my special Budget 2020 blog post on Thursday!
photo by ming jun tan on unsplash
So where was last year's Budget? Especially as 2019 saw two Chancellors housed in Number 11. Did I miss it? No, because there wasn’t one, the first time a budget was missing in the year for over 250 years.
"Well, now the Budget is just a few days away and by the sounds of it, it’s going to a big one!"
It’s hard to call what Rishi Sunak will say at the dispatch box, after all, he will only have been in the Chancellor’s job for 28 days! As a result, I expect there will several reviews announced rather than immediate changes.
Having said that, here are seven predictions of what may be announced to get you thinking. Let’s see how many come true:
More than one budget: To start with, my personal prediction is that this will be the first of two budgets in 2020 and the second will be in the autumn. Rishi has only been in the job for less than a month and there are two big real threats to our economy, namely the trade talks with the EU and other countries, and the Coronavirus that may require Rishi to make further changes.
Income Tax: It’s an aspiration of our current Prime Minister to raise the basic rate threshold to £80,000, so maybe the hike of £30,000 will be phased in over three years. The personal allowance will be reinstated for those receiving income over £100,000.
Income Tax: The Prime Minister has said on a couple of occasions that everyone has a right to a personal tax allowance, so those with income over £100,000 may see the full allowance reinstated!
Entrepreneur’s relief: Regarded by some as a generous relief for those selling businesses, this is likely to be curtailed.
National Insurance: An increase in the threshold to align itself with the income tax threshold to be phased in over three years.
National Insurance: A national insurance holiday to be given to employers who take on someone leaving the Armed Forces.
Stamp Duty: The threshold will be raised on residential properties to £500,000.
To read exactly what the Chancellor of the Exchequer, Rishi Sunak, announces on Wednesday watch out for my special budget blog post on Thursday!
Until next time ...
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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