Mini-Budget 23 September 2022 – updated 17 October 2022 the announcements below have now been amended/cancelled by the New Chancellor
This so-called mini-budget that actually morphed into a series of major announcements have today been in the most part reversed. Only the ones in bold remain – the largest being the withdrawal of the health and social care levy which will still go ahead. The new Chancellor also hinted at cuts to public spending to come in his speech today.
The expected reversal of the 1.25% increase in National Insurance contributions in the current tax year was confirmed and will apply from 6 November 2022. A summary of the main tax changes that will impact the liability of individuals and business owners from April 2023 are:
• A reduction in the Income Tax basic rate from 20% to 19% – cancelled
• The cancellation of the proposed increase in Corporation Tax. The rate will now remain at 19%. Cancelled.
• The withdrawal of the Health and Social Care Levy of 1.25%.
• The Chancellor announced a permanent increase in the SDLT nil rate band to £250,000 (from £125,000) with immediate effect from the date of his announcement, 23 September 2022.
• From next April, workers across the UK providing their services via an intermediary, such as a personal service company, will once again be responsible for determining their employment status. The existing 2017 and 2021 reforms to the off payroll workings rules – also known as IR35 – were a tax law that required the end client, and the contractors they hire, to decide if the working relationship resembles a self-employed engagement or employment. – this is now reversed.