Chancellor Rishi Sunak issued his Spring Statement on 23 March. Here are the key features within the Budget:
For Individuals:
Fuel duty on petrol and diesel cut by 5p per litre for 12 months from 23 March.- The income threshold for National Insurance contributions is to rise £12,570 in July.
- Mr Sunak pledged to cut basic rate of income tax from 20p to 19p in the pound before the end of this Parliament.
- Homeowners installing energy efficiency materials such as solar panels, heat pumps, or insulation will see VAT cut on these items from 5% to zero for five years.
- Local authorities will get another £500m for the Household Support Fund from April, creating a £1bn fund to help vulnerable households with rising living costs.
For Businesses:
Employment Allowance increased from £4,000 to £5,000. This allows eligible businesses to reduce their employer National Insurance contributions (NICs) bills each year.- Business rate exemption for green technology brought forward.
- R&D tax credits to help drive innovation.
- Potential changes to the UK’s existing capital allowances regime, which the government will consider ahead of April 2023.
More Business Support:
In addition, a business support package was announced, involving:
- From April 1, and as announced in Autumn Budget 2021, eligible businesses will now be able to receive a temporary business rates relief worth almost £1.7 billion.
- Freezing the business rates multiplier for another year.
- Introducing the temporary super-deduction, whereby for every pound a company invests, their taxes are cut by up to 25p.
- Increasing the Annual Investment Allowance to £1 million.
- Extending the transitional relief for business rates and supporting small business schemes for 2022-23.
- Establishing Help to Grow, which is giving SMEs the tools they need to innovate, grow, and help drive our economic recovery.
How do these changes affect you?
Is your business implementing the changes involved and spotting opportunities?
“It’s important to understand how the Budget impacts you and your business, ensuring you spot opportunities and remain compliant,” says Darby Nicholls from re:accounts in Stevenage.
If you want to make the most of the changes whilst minimising your tax liability, talk to the expert team at re:accounts.
