After the last few years, with Covid and Growth Plans, and then Growth Plans reversed, statements from the Chancellor have tended to be rather dramatic, whether that be announcing covid support schemes, IR35 reforms, or just generally plunging the markets into chaos!
However, after Chancellor Jeremy Hunt delivered his 2023 Budget today, it seems as though we have returned to the days of Budgets being relatively unremarkable. So, let’s have a look at some of the few measures introduced that may affect you and your business:
It was confirmed that corporation tax will still be increasing from April 2023, with the main rate rising from 19% to 25%. However, it is worth pointing out that it is only companies with profits over £250,000. If your profits are less than £50,000 for the year, the corporation tax rate will remain at 19%.
For profits between £50k and £250k, a system of marginal relief will apply, meaning that you will pay tax on an increasing level dependent on whereabouts your profits fall in between that margin.
It was announced that the Capital Allowances Super Deduction (due to end on 31st March 2023) would be replaced by a Full Capital Expenses Allowance which would allow larger companies to expense the full amount of their capital expenditure for corporation tax purposes for the next 3 years.
It was announced that the tax free annual pension allowance would increase for the first time in 9 years from £40,000 to £60,000.
The pension lifetime allowance is to be abolished. Currently, there is a limit of £1,073,100 that can be held in pension pots before additional tax is chargeable. This limit is to be scrapped.
From April 2024, on a gradual basis, the current 30 hours/week free childcare currently offered to 3 and 4 year olds will be extended to include children from 9 months and up in England. This will be introduced gradually, with an aim to have it fully rolled out by September 2025.
- The Energy Price Guarantee is to be kept at £2,500 for an additional 3 months, until the end of June 2023.
- Road fuel duty has been frozen and the 5p cut in petrol and diesel duty has also been extended for 12 months.
- From August, alcohol taxes in pubs will be 11p in the pound lower than the rate in supermarkets.
PaperRocket are a multi award winning accounting practice, and Accredited FreeAgent Practitioners.
We specialise in providing friendly, non-accounting jargon, services for contractors, freelancers, sole traders, and landlords across the UK.
Our fixed fee monthly accounting packages all include a FreeAgent subscription as standard and unlimited support from your allocated accountant.
To find out how we can help you please get in touch now.