Mini Budget 2022, Does This Affect your Company?

Last Friday, the Rt Hon Kwasi Kwarteng MP, Chancellor of the Exchequer, announced the government's Growth Plan, a set of measures to establish pro-growth. A simpler tax system that encourages corporate investment all across the United Kingdom and allows individuals to retain more of their own money.

Among the measures outlined on Friday that will be of special relevance to your business:

• National Insurance payment - 1.25% of the NIC will be reduced. It will be put into action on November 6, 2022, for Class 1 (both employee and employer), Class 1A, Class 1B, and Class 4 (self-employed) NICs.

• Corporation tax - The proposed rise in company tax from 19% to 25% beginning in April of next year has been cancelled.

• Dividend tax - The basic rate will be reduced from 8.75% to 7.5% beginning in April 2023.

• Income tax - From April 2023, the basic rate on incomes exceeding £12,570 will be cut from 20% to 19%. The additional rate of 45% on incomes over £150,000 will be phased out beginning in April 2023.

• Stamp duty - The starting point for payments is now £250k, which is double the present limit.

• IR35 - The 2017 and 2021 IR35 self-employment rule revisions will be abandoned.

If you need any further advice on this please let us know.