Budget/Coronavirus Question Time – videos and FAQ

We are living in unprecedented times and are all affected personally and/or as businesses by the worldwide measures being taken to contain COVID-19.

We share some videos covering key topics such as mothballing a business and Employment law issues below.

We have also answered your questions raised beneath the videos.

To mothball or not to mothball…? – Andrew Tate, Kreston Reeves

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Employment law issues arising from the Budget and Coronavirus – Antonio Fletcher, Brachers

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You also asked us some Budget / Coronavirus questions

Q: What’s happened with Entrepreneurs’ relief?

A: For disposals on or after 11 March 2020, the lifetime limit on gains eligible for Entrepreneurs’ Relief, which offers a reduced 10% rate of CGT on qualifying disposals, will be reduced from £10 million to £1 million. Anti-forestalling rules apply to arrangements entered into before Budget day.

Q: Did the Corporation tax rate reduction get deferred?

A: The rate of corporation tax remains at 19% and will not fall to 17% in 2020.

Q: What about Research and development (R&D)?

A: The rate of R&D expenditure credit will increase from 12% to 13% from 1 April 2020.

Coronavirus

Q: What relief is available for VAT?

A: VAT payments due to be made between 20 March 2020 to 30 June 2020 shall automatically be deferred and payments will not be required until the end of the current tax year, but filings are still required.

Q: What support is there if I have business rates relief?

A: A local authority cash grant of £10,000 is available for businesses that are currently eligible for Small Business Rate Relief or Rural Rate Relief, to help meet their ongoing business costs.

Q: What is the Business rate holiday?

A: There will be a Business rates holiday for retail, hospitality and leisure businesses will be for the 2020 to 2021 tax year

Q: What should I do if I can’t pay my tax?

A: HMRC now has up to 2,000 staff available on a phone helpline to assist businesses who are concerned about meeting their tax liabilities due to Coronavirus

Q: What happened to IR35?

A: Changes to the off-payroll working regime will not take effect until April 2021 due to the coronavirus pandemic

Further information and resources for businesses, individuals, charities and not for profit organisations can be found on our Coronavirus hub.