26 March 2020 Jewish News
www.jewishnews.co.uk
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IN THIS SECTION: Investments 42-43 Divorce 44 Inheritance tax 45
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HERE IS A COMMON PHRASE, thought to be an ancient Chinese curse that states “may you live in interesting times”. It is probably roughly translated into Yiddish as “oy vey”, but is as relevant now as ever. The nation, having got through the Brexit hysteria, is now dealing with the coronavirus crunch. Markets are experiencing some of
their largest falls, as the situation and government response changes on a daily basis. It is easy to tell people not to panic, but that can be hard if your health, job, business or savings are at risk. Our plan with this guide was to help set your finances free. That may be the last thing on most people’s mind at the moment, but having the right financial plan in place is probably more important now than ever.
ANNUAL TAX ALLOWANCES Cash and/or stocks and shares ISA £20,000 Junior ISA £4,368 (increasing to £9,000 from the 2020-21 tax year) Pensions £40,000 Dividends £2,000
Hopefully some of the tips we provide in this finance guide will provide some support and reassurance to those worried about the stock markets, making longterm business and relationship plans, as well as thinking about passing on their wealth. Just as the Jews freed themselves from slavery in Egypt, this, too, will pass and hopefully you can set your finances free.
TAX RATES Band
Taxable income
Tax rate
Personal Allowance
Up to £12,500
0%
Basic rate
£12,501 to £50,000
20%
Higher rate
£50,001 to £150,000
40%
Additional rate
over £150,000
45%
Corporation tax
Charged on profits
19%
CORONAVIRUS: SUPPORT FOR YOUR FINANCES AND BUSINESS
DIVIDENDS Tax band
Tax rate on dividends over the allowance
Basic rate
7.5%
Credit card, loan and overdraft borrowers given more time to repay debts and late fees waived. Check with your lender.
Higher rate
32.5%
Statutory sick pay of £94.25 per week available from day one for those isolating due to coronavirus or unable to work because they are following government isolation advice.
Additional rate
38.1%
INDIVIDUALS Three-month mortgage payment holiday if you are affected by coronavirus. Contact your lender to apply.
BUSINESS Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, to enable businesses to apply for a loan of up to £5 million, with the government underwriting up to 80 percent. Businesses can access the first six months interest free. Details at www.british-business-bank.co.uk/ourpartners/coronavirus-businessinterruption-loan-scheme-cbils/