Budget 2020 - MSE News

Former_MSE_Callum

A new package of measures to help those who lose out on earnings due to coronavirus was unveiled by the Chancellor today...
Read the full story here:

Budget 2020: Sick pay and benefits extended to help those hit by coronavirus

colsten

2020-21 ISA RATES

Adult ISA  limit for 2020-21 remains £20,000.
JISA limit for 2020-21 raised from £4,368 to £9,000

(source: https://www.gov.uk/government/publications/budget-2020-documents/budget-2020)

Reaper

Yes I thought it odd to lead with sick pay when posting on the Savings & Investments Board. The increase in the JISA allowance is much more relevant.

chelseablue

I heard the bit about NI contributions. Did they also raise the tax free allowance from £12,500? 

Mnd

No.. Don't think so

Reaper

chelseablue said:

I heard the bit about NI contributions. Did they also raise the tax free allowance from £12,500? 

Partly:

"The Budget confirms the government’s commitment to increase the National Insurance contributions (NICs) Primary Threshold and Lower Profits Limit, for employees and the self-employed respectively, to £9,500 from April 2020

...This is the first step in meeting the government’s ambition to increase these thresholds to £12,500, which would save a typical employee over £450 per year."

EDIT: Ah I think you meant income tax £12,500 not NI threshold £12,500. If so then no it hasn't changed.

LHW99

So would this be with a view to alining the NI and income tax basic rate thresholds, and pave the way for the two to be amalgamated??

colsten

LHW99 said:

So would this be with a view to alining the NI and income tax basic rate thresholds, and pave the way for the two to be amalgamated??

Probably. At least Johnson mumbled something about that some time ago. I wouldn't read too much into it. They hardly know what to do today, never mind in future.

tropic_of_Username008

Merging NI and income tax is logical in theory, but it opens lots of cans of worms.

Various benefits (both State Pension, and working-age benefits) are based on NI contributions. If the combined income tax + NI applies to pensions, then they will be taxed twice on the NI element (since the original contributions only got relief for income tax). That's just off the top of my head — there are probably other issues.

There are probably ways to deal with all these issues. But it's not easy, and could upset plenty of people (some of whom are Tories ). So I wouldn't hold my breath.

cloud_dog

They are not 'merging' the two, simply working towards aligning the starting threshold.

ColdIron

Nothing to do with savings or investments but the removal of VAT from e-books is welcome. Shame it doesn't come in until December 2020

2.38 VAT

VAT on e-publications – The Government will introduce legislation to apply a zero rate of VAT to e-publications from 1 December 2020, to make it clear that e-books, e-newspapers, e-magazines and academic e-journals are entitled to the same VAT treatment as their physical counterparts