Confirmation that the government will introduce a new statutory entitlement to two weeks’ of leave for employees who suffer the death of a child under 18, or a stillbirth after 24 weeks of pregnancy. Employed parents will also be able to claim pay for this period, subject to meeting eligibility criteria. This entitlement will come into force in April 2020.
Pensions and Savings
Lifetime Allowance
The Budget Statement confirms that the Lifetime Allowance for pension savings will rise to £1,055,000 for 2019-20, in line with CPI inflation.
Starting rate for savings
The band of savings income that is subject to the 0% starting rate will be kept at its current level of £5,000 for 2019-20.
Individual Savings Account (ISA) annual subscription limits
The adult ISA annual subscription limit for 2019-20 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs for 2019-20 will be uprated in line with CPI to £4,368.
Child Trust Funds
The government will publish a consultation in 2019 on draft regulations for maturing Child Trust Fund accounts. The annual subscription limit for Child Trust Funds for 2019-20 will be uprated in line with CPI to £4,368 .
Improving NS&I’s offer to customers
NS&I will allow people other than parents and grandparents to gift Premium Bonds to a child. This, alongside a lower minimum investment of just £25 and the launch of a new app, will make saving with NS&I easier than ever.
Pension Dashboards
The government is taking steps to support the launch of Pensions Dashboards, innovative tools that will for the first time allow an individual to see their pension pots, including their State Pension, in one place. The Budget confirmed that the DWP will consult later this year on the detailed design for Pensions Dashboards, and on how an industry-led approach could harness innovation while protecting consumers. DWP will work closely with the pensions industry and financial technology firms.
Boosting pensions for the self-employed
This winter, DWP will publish a paper setting out the government’s approach to increasing pension participation and savings persistency among the self-employed. This follows the 2017 review of automatic enrolment and will focus on expanding evidence through a programme of targeted interventions and partnerships.
Tax avoidance and evasion
The government remains committed to tackling tax avoidance and evasion, aggressive tax planning and non- compliance. Since 2010 the government has secured and protected over £185 billion of tax that would otherwise have gone unpaid and introduced over 100 measures to crack down further on avoidance, evasion, aggressive tax planning and unfair outcomes. New measures announced in this budget include:
Preventing abuse of R&D tax relief for small and medium-sized enterprises (SMEs)
To help prevent abuse of the payable credit, from 1 April 2020, the amount of payable R&D tax credit that a qualifying loss-making company can receive in any tax year will be restricted to three times the company’s total PAYE and NICs liability for that year. This will ensure the relief is robust against identified abuse, including fraud, following the prevention by HMRC of fraudulent claims worth £300 million. The government will consult on this change.
Protecting your taxes in insolvency
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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