25/09/2022
Key takeaways from 2022 mini budget:
1. Growth target has been set to 2.5%
2. Previous tax hikes to the corporation tax and national insurance contributions have been scrapped.
3. Additional tax rate of 45% abolished for individuals with taxable income of £150,001 and above. (ABOLISHED!, 03/10/2022)
4. From the 6th of April 2023 basic rate of income tax willl be reduced by 1% from 20% to 19%. It means you will pay less tax if you will be earning more taxable income in 2023/24 tax year.
5. SDLT threshold has been increased from £125,000 to £250,000 for purchase of residential properties in the England and Wales. First time buyers threshold has also been increased from £300,000 to £425,000 and the value of the property on which first time buyers relief can be claimed has been risen from £500,000 to £625,000.
6. New investment zones will offer businesses tax cuts and reduced regulation in an attempt to drive growth and encourage investment across the UK.
7. Both the Enterprise and Seed Enterprise Investment Schemes (EIS and SEIS) and VCT schemes will be renewed beyond their 2025 deadlines, in a bid to boost UK entrepreneurship.
8. The government will scrap the planned alcohol duty increase for wine, beer and spirits.
9. Universal Credit claimants who earn less than the equivalent of 15 hours a week at the National Living Wage will be required to meet their work coach regularly to take active steps to increase their earnings or face having their benefits reduced.
10. The Chancellor pledged to simplify so-called IR35 rules. A relaxation of the rules mean that companies could more easily claim that a larger proportion of their workforce are contractors, and therefore reduce their employment costs.
11. The cap on bankers bonuses has been scrapped. This cap was first introduced across the EU in 2014 after the 2008 global financial crisis. Under the present rules, a banker’s bonus cannot be higher than twice of their annual salary – without a shareholders agreement.
12. The Government is also introducing VAT-free shopping for the overseas visitors. It has been said that this will support high streets, shopping centres and airports, creating jobs in the retail and tourism.
