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