LATEST UK BUDGET UPDATE 2022
Whether you are an individual or a business, this latest budget (or mini-budget as the UK press are calling it) has made changes that may effect you. The government has announced cuts to income tax, reversed national insurance increases, scrapped increases in corporation tax, and announced a permanent £1m annual investment allowance in the first budget of Liz Truss’s government.
If you feel you need help with the effects any of these changes have made to your accounting situation please feel free to get in touch with one of our certified accountants on 0800 169 3278.
How will the budget changes effect you and your business?
The key tax highlights from the budget are:
CORPORATION TAX
- Rate to remain unchanged at 19%, cancelling planned rise to 25%
- The bank surcharge stays at 8%
INCOME TAX
- Basic rate cut to 19% from April 2023
- Additional rate abolished
- Higher rate of 40% from April 2023 for all income over the basic rate
- 1.25% increase to income tax on dividends cancelled
- National insurance is to be cut by 1.25% for employees from 6 November
ANNUAL INVESMENT ALLOWANCE
- Permanently set at £1 million from 1 April 2023
STAMP DUTY CUT
- No stamp duty to pay on properties costing less than £250,000 as the nil-rate band is doubled
- First time buyers to pay no stamp duty on the first £425,000
- The value of the property on which first-time buyers can claim relief rises from £500,000 to £625,000
VAT
- VAT-free shopping for overseas visitors being introduced
NATIONAL INSURANCE
- National insurance is to be cut by 1.25% for employees and employers from 6 November
INVESTMENT ZONES AND TAX RELIEFS
- 38 areas to establish tax-cutting Investment Zones
- reliefs from stamp duty, business rates and national insurance
ALCOHOL DUTY RATES
- Planned increases in the rates for beer, cider, wine, and for spirits are all cancelled
ENTERPRISE INVESTMENT SCHEME (EIS) and VENTURE CAPITAL TRUSTS
- Extended beyond 2025
SEED ENTERPRISE INVESTMENT SCHEME (SEIS)
- Limits to be made more generous
IR35 RULES TO BE SIMPLIFIED
- 2017 and 2021 off-payroll working rules changes
ENERGY BILL RELIEF SCHEME
- Price Guarantee for businesses to reduce energy costs
Liz Truss’s government and chancellor Kwasi Kwarteng have made these changes to try and hold off the recession and make the drastic increase in energy prices more affordable for business and individuals alike. How will these changes effect your business?
Let us know in the comments below and if you feel like you need accounting advice to plan for these changes efficiently then call and speak to an accountant today on 0800 169 3278 or get in touch.
