Not so Mini Budget
IN SUMMARY - if you read anything today - READ THIS
From 23 September 2022
The threshold for Stamp Duty Land Tax (SDLT) will be raised from £125,000 to £250,000.
The SDLT threshold for first time buyers will be raised from £300,000 to £425,000 - good news for first time buyers!
From November 2022 - good for the employees and employers!
The 1.25% increase to National Insurance will be reversed. The national insurance thresholds will remain the same.
From April 2023
The proposed cut of basic rate income tax from 20% to 19% has been brought forward from April 2024 to April 2023 - good news everyone!
There will be a 4-year transition period for Gift Aid relief to maintain the income tax basic rate relief at 20% until April 2027. There will also be a one-year transition period for pension schemes to claim 20% tax relief. - this one is probably a bit techy but we'll take it in the good news pile
The 45% income tax rate, otherwise known as the 'additional' rate of tax, will be abolished making 40% the highest income tax rate - good news if you are an additional rate tax payer
The planned Health and Social Care levy will be abandoned - whilst this seems like good news in the short term, our health care system still need a boost, none of us are getting any younger
The 1.25% increase to dividend tax will be cancelled - Good! The raid on directors of small companies seems to have been stopped
The increase to corporation tax has been cancelled and the corporation tax rate will remain at 19% for all profit levels - good news for business, it was such a hike from 19% to 25% that it was probably going to stop businesses growing
The 2017 and 2021 reforms to off-payroll working rules (IR35) will be repealed, giving workers providing their services via an intermediary the responsibility of deciding their own employment status - IR35 spooked a lot of companies in the lead up to COVID which meant consultants were made to go on the payroll thus reducing their earning capacity, so a lot of them refused, rightly so!