Budget 2020 analysis: Cashflow support for SMEs will be vital
Tony Medcalf, tax partner at MHA Moore and Smalley in Preston, said: “Coronavirus stole the show at this budget, but the short term cashflow support announced for businesses, such as allowing businesses to defer tax payments and access to emergency loans, is a hugely positive step for owner-managed businesses.
“In any other year, the record infrastructure spending would have been the main talking point, but this will take time to trickle through and business owners are rightly more concerned with the short term. Many of our own clients will welcome the action taken to abolish business rates for one year for smaller retail, leisure and hospitality businesses. It will be interesting to see what happens to these business rates once the coronavirus crisis is over.
“Reform of Entrepreneurs’ Relief was widely anticipated, and the chancellor didn’t duck the issue, reducing the lifetime allowance from £10m to £1m. With many other expected changes left out of this budget due to coronavirus, eyes will now turn to the spending review and second budget later this year.”
“Some of the other big action today actually happened outside the budget with the Bank of England’s decision to cut interest rates back to historic lows and make extra money available for the banking sector to lend to businesses and the latter will certainly be welcomed by the SME community.
For further explanation on what the Budget means for you and your business, please contact Tony Medcalf.