A.C.MOLE - Spring Budget Newsletter 2020

S PR ING 2 02 0

Dennis had served his apprenticeship at Bainbridges of Newcastle before working for Hatchers of Taunton, where he met Annie. The couple married in 1924 and moved to Croydon, returning to Annie’s home in Stoke St Gregory shortly before the outbreak of the second World War. When Dennis and Annie set up in Station Road, wartime restrictions were in place and he acquired stock from wholesalers and customers who had either been bombed out or were newly married and had not found homes to move into and had dockets to acquire furniture.

He put the items into stock with the proviso he could show it on the sales floor. The couple’s son Alan joined the firm after he left school, making deliveries in the company’s 1934 Austin Van, a converted milk float.

They needed to take £8 a day and were delighted to record takings of £32 on the opening day.

Dennis (junior) joined in 1953 after completing his National Service. His wife, Heather, was taken on in 1960 and, with several years in the fashion trade behind her, introduced the soft furnishings department, which is today ably managed

by Lin Cleaves.

Small improvements were made in the early days, but after 1953 showrooms were developed and opened for a fuller selection and display.

After Dennis (senior) and Annie died in 1969 and 1975 respectively, Dennis (junior) and Heather took over the reins.

Calverts has over the years expanded along Station Road, acquiring adjoining properties – Pitman’s Butchers, Pearce’s Sweet Shop, Reed and Giles’ Fishmongers and Poole the Ironmongers – now boasting eight shop fronts with 25,000 square feet of showrooms over two floors and customer parking off Canal Road.

Over the years, Calverts has developed a loyal customer base offering quality furniture, upholstery, beds, floor coverings and window treatments from design led manufacturers, always evolving and developing its ranges to suit changing styles in interior design.

Dennis puts the secret of Calverts’ longevity down to its staff.

He said: “We have always had excellent and knowledgeable staff who give honest and impartial advice to our customers”.

“Calverts has a family feel and the staff are very much part of this. Some have been with us for over 40 years”.

PROACTIVE

A C Mole & Sons client, Calverts, recently celebrated their 75th year in business. Calverts of Taunton started trading in Station Road on November 4th 1944 after Dennis Calvert (senior) and his wife Annie acquired the furniture store from Mr Pearce, who had run it for 26 years.

A . C . M O L E & S O N S C H A R T E R E D A C C O U N TA N T S & C H A R T E R E D TA X A D V I S E R S

Calverts of Taunton th Celebrates 75 Anniversary

Calverts remains a family business, with Susan, Dennis and Annie’s grand-daughter, joining the business three and half years ago, along with store manager Helen Dugdale.

INSIDE THIS ISSUE

Dennis added: “With the support of the staff, the business is looking forward to an exciting future on Taunton’s high street”.

• COVID-19 SUPPORT MEASURES

• BUSINESS RATES RELIEF • ALLOWANCES AND THRESHOLDS FOR 2020

A .C.MOLE & SONS

CHARTERED ACCOUNTANTS CHARTERED TAX ADVISERS

A. C. Mole & Sons Stafford House, Blackbrook Park Ave, Taunton, Somerset TA1 2PX T. 01823 624450 F. 01823 444533 E. info@acmole.co.uk

www.acmole.co.uk

• SUPPORT FOR SCIENCE & TECHNOLOGY • GREEN CREDENTIALS

THE BUDGET

We find ourselves in unchartered waters, as does the rest of the world.

Chancellor Rishi Sunak gave his first budget speech on Wednesday 11th March only 4 weeks after taking on the role, against the backdrop of the global outbreak of Covid-19.

The Office for Budget Resposibility forecasts which we normally refer to do not reflect the global spread of Covid-19 and the impact on the UK economy is highly uncertain.

At the time of going to press the chancellor has just announced a further £350 billion financial support package. Full details of the package are yet to be announced. Please refer to our website for updates as they become available.

Covid-19 : Package of suppo rt

cut e t a r t s e r e t In o 0.25% t % 5 .7 0 m o fr

Employment a t its highest level

Growth?

Staff Promotions We are delighted to announce the promotion of Adam Knight and Sarah Twist to Associate from 1 February 2020.

This is in recognition of their exceptional contribution and dedication to A.C.Mole & Sons over many years. To read more about Adam and Sarah please see their profiles on our website at acmole.com/103

wn o d y t i v i t Produc A.C.Mole Charity of the Year 2020 We are delighted to announce that our Charity of the Year for 2020 is Dorset & Somerset Air Ambulance.

Throughout the year we will be organising events to raise money for the charity. Previous events have included quiz evenings, race nights, Christmas jumpers and lots of baking.

Keep an eye on our website for details of the next event.

SPRING 2020

PROACTIVE - A.C.MOLE & SONS

THE BUDGET 2020

Capital allowances

The first half of the Chancellor’s speech focused on a raft of temporary support measures that will be introduced to support public services, individuals and businesses through the impact of Covid-19.

Statutory Sick Pay (SSP) in connection with Covid-19 cases, including employees who self-isolate even where they don’t have symptoms, will be paid from day 1.

For employers with fewer than 250 employees, the government will meet the cost of providing SSP for 14 days. For the self-employed or those in the gig economy a £500m welfare boost and a new £500m hardship fund will be available.

Business rates relief will be temporarily extended including a 100% relief for the coming year for certain sectors where their rateable value is below £51,000 and a £3,000 cash grant for small businesses where they already qualify for 100% rates relief.

at £40,000 llowance remains

• Annual a old at the income thresh d will 20 20 ril Ap 6 om re • Fr l allowance is tape which the annua on ll wi ,000 (Tapering ly£240,000) increase by £90 e over incom als with adjusted apply to individu

ual level to which ann 0 • The minimum 4, tapered is £ 00 allowance can be £40,000 £4,000 £240,000

£312,000

rcharge will From 1 April 2021 a 2% su residents be introduced for non-UK operty in purchasing residential pr land.

England and Northern Ire

Annual investment allowance remains at £1,000,000 until 31 December 2020 and then falls to £200,000. The rates of writing down allowances were maintained at 18% for the general pool and 6% on the special rate pool.

VAT

l allowance... .. .. .. .. .. .. .. .. .. .. .. .. ..

Higher rate thre .. .. .. .. . £12,500 shold.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . £50,0 Additional rate 00 threshold. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . £150,0 Individual Savin 00 gs (ISA) investment Account limit.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. £ Junior ISA invest 20,000 ment limit... .. .. .. .. .. .. .. .. .. .. .. .. .. £ National Insura 9,000 nce Primary Th reshold. . .. .. .. .. ..

Capital gains ta £9,500 x annual exem ption for individuals (and personal representatives for trustees of ).. .. .. .. .. settlements.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. £12,300 VAT registration .. .. .. .. . £6,150 threshold.. .. .. .. .. .. .. .. .. .. .. .. .. . £ 85,000 For a pdf of a ll 2020/21 rate s an plea se visit acm ole.com/ta x20 d allowances 20

E-publicatio ns w 1 Decembe ill enjoy zero rating fr r 2020 to b ring them in om with other line written ma t e r ia l.

The domes tic and constr reverse charge for bu uction se ilding delayed un rvices continues to be til 1 Octobe r 2020.

GDP

The nations debt is forecast to drop as a percentage of Gross Domestic Product but will increase in absolute terms.

Support for Science & Technology The Chancellor seemed passionate about the government’s ambition for the UK to be in a world-leading position in science and technology and the government will increase investment in science, innovation and technology through a range of initiatives including increasing the Research & Development Expenditure Credit rate from 12% to 13% from 1 April 2020. The PAYE cap on the payable tax credit which was due to be introduced this year for small and medium-sized enterprises will be delayed until 1 April 2021.

A review of the cap’s design will be undertaken to ensure eligible businesses are able to access the relief.

Corporation tax

Corporation tax rate to be maintained at 19%.

Principal priva te residence r elief (PPR) and lettings r elief

From 6 April 20 20 the final pe riod of ownersh be covered by ip that will PPR relief in rela tion to property will be reduced to nin e months.

For disabled pe ople or those in a care home th residence for P e fina PR will, howeve r, continue to be l period of 36 months.

From 6 April 20 20 lettings relie f will be severe ly restricted.

e Employment allowanc

ll increase from Employment allowance wi April 2020. £3,000 to £4,000 from 6

Stamp duty land tax

3%

2%

The cost of the support package is noted as £12bn but the full impact of the virus on the UK economy will not be known for some time.

Allowances an d thresholds f or 2020/21 Persona

Pensions

£100,000

A Coronavirus Business Interruption Loan scheme will be in place to guarantee up to 80% of banks losses on loans provided to small businesses, hopefully resulting in banks being more willing to lend to support businesses through the coming months. HM Revenue & Customs will ‘scale up’ its Time to Pay service to allow extra time to pay tax bills for both businesses and individuals.

Structures and buildings allowances rate will increase from 2% to 3% from 1 April 2020 for corporation tax and 6 April 2020 for income tax.

Entrepreneurs' re lief

Lifetime limit redu ced from £10m to £1m with immediate effect.

£ 10 m £ 1m

Green credentials The latter part of the Chancellor’s speech focused on the UK’s green credentials and its target of net zero emissions by 2050. The use of clean energy is a vital part of reducing carbon emissions and a package of measures will be introduced to help reach targets.

A levy of £200 per tonne will be charged on plastic packaging that does not contain at least 30% recycled content from 1 April 2022.

The entitlement to use red diesel – which has a lower fuel duty rate than white diesel – will be withdrawn from all present uses, except in agriculture, fish farming, the railway and for non-commercial heating systems.

By 2024/25 the Climate Change Levy will be the same for both gas and electricity.

First Year Allowances will be available on ultra-low emission vehicles from 1 April 2021 until 31 March 2025 and from 2021 business cars with emissions over 50g/km will only be eligible for allowances at 6%.

SPRING 2020

PROACTIVE - A.C.MOLE & SONS

THE BUDGET 2020

Capital allowances

The first half of the Chancellor’s speech focused on a raft of temporary support measures that will be introduced to support public services, individuals and businesses through the impact of Covid-19.

Statutory Sick Pay (SSP) in connection with Covid-19 cases, including employees who self-isolate even where they don’t have symptoms, will be paid from day 1.

For employers with fewer than 250 employees, the government will meet the cost of providing SSP for 14 days. For the self-employed or those in the gig economy a £500m welfare boost and a new £500m hardship fund will be available.

Business rates relief will be temporarily extended including a 100% relief for the coming year for certain sectors where their rateable value is below £51,000 and a £3,000 cash grant for small businesses where they already qualify for 100% rates relief.

at £40,000 llowance remains

• Annual a old at the income thresh d will 20 20 ril Ap 6 om re • Fr l allowance is tape which the annua on ll wi ,000 (Tapering ly£240,000) increase by £90 e over incom als with adjusted apply to individu

ual level to which ann 0 • The minimum 4, tapered is £ 00 allowance can be £40,000 £4,000 £240,000

£312,000

rcharge will From 1 April 2021 a 2% su residents be introduced for non-UK operty in purchasing residential pr land.

England and Northern Ire

Annual investment allowance remains at £1,000,000 until 31 December 2020 and then falls to £200,000. The rates of writing down allowances were maintained at 18% for the general pool and 6% on the special rate pool.

VAT

l allowance... .. .. .. .. .. .. .. .. .. .. .. .. ..

Higher rate thre .. .. .. .. . £12,500 shold.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . £50,0 Additional rate 00 threshold. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . £150,0 Individual Savin 00 gs (ISA) investment Account limit.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. £ Junior ISA invest 20,000 ment limit... .. .. .. .. .. .. .. .. .. .. .. .. .. £ National Insura 9,000 nce Primary Th reshold. . .. .. .. .. ..

Capital gains ta £9,500 x annual exem ption for individuals (and personal representatives for trustees of ).. .. .. .. .. settlements.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. £12,300 VAT registration .. .. .. .. . £6,150 threshold.. .. .. .. .. .. .. .. .. .. .. .. .. . £ 85,000 For a pdf of a ll 2020/21 rate s an plea se visit acm ole.com/ta x20 d allowances 20

E-publicatio ns w 1 Decembe ill enjoy zero rating fr r 2020 to b ring them in om with other line written ma t e r ia l.

The domes tic and constr reverse charge for bu uction se ilding delayed un rvices continues to be til 1 Octobe r 2020.

GDP

The nations debt is forecast to drop as a percentage of Gross Domestic Product but will increase in absolute terms.

Support for Science & Technology The Chancellor seemed passionate about the government’s ambition for the UK to be in a world-leading position in science and technology and the government will increase investment in science, innovation and technology through a range of initiatives including increasing the Research & Development Expenditure Credit rate from 12% to 13% from 1 April 2020. The PAYE cap on the payable tax credit which was due to be introduced this year for small and medium-sized enterprises will be delayed until 1 April 2021.

A review of the cap’s design will be undertaken to ensure eligible businesses are able to access the relief.

Corporation tax

Corporation tax rate to be maintained at 19%.

Principal priva te residence r elief (PPR) and lettings r elief

From 6 April 20 20 the final pe riod of ownersh be covered by ip that will PPR relief in rela tion to property will be reduced to nin e months.

For disabled pe ople or those in a care home th residence for P e fina PR will, howeve r, continue to be l period of 36 months.

From 6 April 20 20 lettings relie f will be severe ly restricted.

e Employment allowanc

ll increase from Employment allowance wi April 2020. £3,000 to £4,000 from 6

Stamp duty land tax

3%

2%

The cost of the support package is noted as £12bn but the full impact of the virus on the UK economy will not be known for some time.

Allowances an d thresholds f or 2020/21 Persona

Pensions

£100,000

A Coronavirus Business Interruption Loan scheme will be in place to guarantee up to 80% of banks losses on loans provided to small businesses, hopefully resulting in banks being more willing to lend to support businesses through the coming months. HM Revenue & Customs will ‘scale up’ its Time to Pay service to allow extra time to pay tax bills for both businesses and individuals.

Structures and buildings allowances rate will increase from 2% to 3% from 1 April 2020 for corporation tax and 6 April 2020 for income tax.

Entrepreneurs' re lief

Lifetime limit redu ced from £10m to £1m with immediate effect.

£ 10 m £ 1m

Green credentials The latter part of the Chancellor’s speech focused on the UK’s green credentials and its target of net zero emissions by 2050. The use of clean energy is a vital part of reducing carbon emissions and a package of measures will be introduced to help reach targets.

A levy of £200 per tonne will be charged on plastic packaging that does not contain at least 30% recycled content from 1 April 2022.

The entitlement to use red diesel – which has a lower fuel duty rate than white diesel – will be withdrawn from all present uses, except in agriculture, fish farming, the railway and for non-commercial heating systems.

By 2024/25 the Climate Change Levy will be the same for both gas and electricity.

First Year Allowances will be available on ultra-low emission vehicles from 1 April 2021 until 31 March 2025 and from 2021 business cars with emissions over 50g/km will only be eligible for allowances at 6%.

S PR ING 2 02 0

Dennis had served his apprenticeship at Bainbridges of Newcastle before working for Hatchers of Taunton, where he met Annie. The couple married in 1924 and moved to Croydon, returning to Annie’s home in Stoke St Gregory shortly before the outbreak of the second World War. When Dennis and Annie set up in Station Road, wartime restrictions were in place and he acquired stock from wholesalers and customers who had either been bombed out or were newly married and had not found homes to move into and had dockets to acquire furniture.

He put the items into stock with the proviso he could show it on the sales floor. The couple’s son Alan joined the firm after he left school, making deliveries in the company’s 1934 Austin Van, a converted milk float.

They needed to take £8 a day and were delighted to record takings of £32 on the opening day.

Dennis (junior) joined in 1953 after completing his National Service. His wife, Heather, was taken on in 1960 and, with several years in the fashion trade behind her, introduced the soft furnishings department, which is today ably managed

by Lin Cleaves.

Small improvements were made in the early days, but after 1953 showrooms were developed and opened for a fuller selection and display.

After Dennis (senior) and Annie died in 1969 and 1975 respectively, Dennis (junior) and Heather took over the reins.

Calverts has over the years expanded along Station Road, acquiring adjoining properties – Pitman’s Butchers, Pearce’s Sweet Shop, Reed and Giles’ Fishmongers and Poole the Ironmongers – now boasting eight shop fronts with 25,000 square feet of showrooms over two floors and customer parking off Canal Road.

Over the years, Calverts has developed a loyal customer base offering quality furniture, upholstery, beds, floor coverings and window treatments from design led manufacturers, always evolving and developing its ranges to suit changing styles in interior design.

Dennis puts the secret of Calverts’ longevity down to its staff.

He said: “We have always had excellent and knowledgeable staff who give honest and impartial advice to our customers”.

“Calverts has a family feel and the staff are very much part of this. Some have been with us for over 40 years”.

PROACTIVE

A C Mole & Sons client, Calverts, recently celebrated their 75th year in business. Calverts of Taunton started trading in Station Road on November 4th 1944 after Dennis Calvert (senior) and his wife Annie acquired the furniture store from Mr Pearce, who had run it for 26 years.

A . C . M O L E & S O N S C H A R T E R E D A C C O U N TA N T S & C H A R T E R E D TA X A D V I S E R S

Calverts of Taunton th Celebrates 75 Anniversary

Calverts remains a family business, with Susan, Dennis and Annie’s grand-daughter, joining the business three and half years ago, along with store manager Helen Dugdale.

INSIDE THIS ISSUE

Dennis added: “With the support of the staff, the business is looking forward to an exciting future on Taunton’s high street”.

• COVID-19 SUPPORT MEASURES

• BUSINESS RATES RELIEF • ALLOWANCES AND THRESHOLDS FOR 2020

A .C.MOLE & SONS

CHARTERED ACCOUNTANTS CHARTERED TAX ADVISERS

A. C. Mole & Sons Stafford House, Blackbrook Park Ave, Taunton, Somerset TA1 2PX T. 01823 624450 F. 01823 444533 E. info@acmole.co.uk

www.acmole.co.uk

• SUPPORT FOR SCIENCE & TECHNOLOGY • GREEN CREDENTIALS

THE BUDGET

We find ourselves in unchartered waters, as does the rest of the world.

Chancellor Rishi Sunak gave his first budget speech on Wednesday 11th March only 4 weeks after taking on the role, against the backdrop of the global outbreak of Covid-19.

The Office for Budget Resposibility forecasts which we normally refer to do not reflect the global spread of Covid-19 and the impact on the UK economy is highly uncertain.

At the time of going to press the chancellor has just announced a further £350 billion financial support package. Full details of the package are yet to be announced. Please refer to our website for updates as they become available.

Covid-19 : Package of suppo rt

cut e t a r t s e r e t In o 0.25% t % 5 .7 0 m o fr

Employment a t its highest level

Growth?

Staff Promotions We are delighted to announce the promotion of Adam Knight and Sarah Twist to Associate from 1 February 2020.

This is in recognition of their exceptional contribution and dedication to A.C.Mole & Sons over many years. To read more about Adam and Sarah please see their profiles on our website at acmole.com/103

wn o d y t i v i t Produc A.C.Mole Charity of the Year 2020 We are delighted to announce that our Charity of the Year for 2020 is Dorset & Somerset Air Ambulance.

Throughout the year we will be organising events to raise money for the charity. Previous events have included quiz evenings, race nights, Christmas jumpers and lots of baking.

Keep an eye on our website for details of the next event.