Chat with us, powered by LiveChat Summary of the Emergency Mini-Budget 2022

Summary of the Emergency Mini-Budget 2022

Emergency mini-budget 2022
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    This article will summarise the key points stated in Kwasi Kwarteng’s fiscal statement.

    Kwasi Kwarteng’s radical first Budget, known as the “The Growth Plan”, which was held today on the 23rd of September 2022, has brought various reliefs to support individuals and business owners ahead of the Autumn budget in November.

    Off-payroll rules Scrapped

    Contractor’s rejoice; the off-payroll working rules commonly known as IR35 will be repealed effective from the 6th of April 2023.

    From the new financial year, workers across the UK providing their services will be responsible for determining their employment status and paying their taxes and NICs, as opposed to the current situation, where the employer determines the employment status.

    Income Tax Cuts

    The basic rate of Income Tax will be cut from 20% to 19%, and the Government will abolish the additional rate tax of 45% in its entirety.

    Dividend Taxes Reversed

    Dividends tax rates which were raised from April 2022, will be reduced back to the rates of 7.5% and 32.5%, respectively, from April 2023.

    The planned increase of Corporation Tax Scrapped

    The Government had planned to increase Corporation taxes to 25% in April 2023, which has also been scrapped. The current corporation tax of 19% will remain.

    Stamp Duty Land Tax bands have changed.

    No Stamp Duty Land Tax will be paid on properties up to £250,000. For First-time buyers, the threshold has now increased to £425,000.

    Below are further key points made in the mini-budget held today:

    • Annual Investment Allowance will remain permanently at £1m
    • VAT-free shopping to be introduced for overseas visitors.
    • 6th of November onwards, the reversal of NIC will imply reducing the NIC by 1.25%
    • Increased Dividend Rates to be reduced back to the same levels as in 2021/22 in April 2023
    • Removal of the cap on bankers bonuses
    • Annual Investment Allowance will remain permanently at £1m
    • Seed Enterprise Investment Scheme criteria will be widened, and funding limits will be increased from £150,000 to £250,000.
    • Off-payroll rules to be scrapped from April 2023
    • VAT-free shopping to be introduced for overseas visitors
    • To encourage more people to work, there will be changes to Universal Credit.
    • The Office of Tax Simplification is to be scrapped.
    • Reforms in Pensions rules
    • Introducing legislation to streamline complex planning laws

    If you are unsure of how this budget may affect you, please get in touch with our team on 0203 0111 898 for further assistance.

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