The Chancellor of the Exchequer announced his Budget on Wednesday. In case you missed the main points they are:
Giving money away:
- More money for almost every government department.
- Increased capital allowances for business.
- Cheaper beer.
- Reduced internal Air Passenger Duty.
- More Universal Credit where people are working.
- Rate relief on hospitality and retail.
- Better loss relief.
- Cheaper prosecco.
- Probably social care costs from 2023.
Taking our money back:
- The new Social Levy (gaining him £1,000 on a £50,000 salary) – an extra 1.25% on NIC and on dividend tax.
- No increase in personal allowances for income tax, Capital Gains or inheritance tax.
- New penalty regimes for VAT and Income Tax (trust me, they will enforce them, eventually!).
- Change in the basis period for the self employed which will double tax some people and bring forward the tax take.
- Dearer red wine.
- Removal of the pension triple lock (temporarily – but actually, a long term saving).
- Corporation Tax is still rising from 31.03.23.
- Dearer spirits.
If you need any help to interpret this Budget and see the affect on yourself or your business, call our team on 01803 500 500