What does the mini-budget mean for businesses?
Posted on 23rd September 2022 at 15:05
The mini-budget has delivered the largest changes that the UK has seen since the 1970s. These announcements were set out as helping households and businesses in the face of rising costs and aiming to boost economic growth.
The changes that may impact businesses or are what businesses should be aware of are:
• The planned basic rate income tax reduction from 20% to 19% will be introduced a year early in April 2023
• The 45% income tax band rate will be scrapped
• The planned National Insurance increase of 1.25% on 6 November 2022 has been cancelled
• The planned corporation tax increase from 19% to 25% has been cancelled
• IR35 for contractors will be simplified
• The planned increased duty on beer, wine, cider and spirits has been cancelled
• Stamp duty will be changed on property sales to over £250,000 rather than £125,000
• There will be a creation of 40 investment zones that will benefit from tax breaks for businesses and current proposals include the whole of Yorkshire
These announcements will benefit employees and businesses to varying extents depending on your industry and circumstances.
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