We just wanted to bring you an update following the budget today. There were no huge shocks, but some useful things to look out for and where we think relevant we’ll pick up the phone over the next few weeks, but if you’re plotting and scheming something new or we’re not sure what you’re up to then please drop us a note and we’d love to catch up!
We’ve given you three options:
- Look over the visual update on PDF as below
- Check out our summary below
- Listen to our Bev chatting through the headlines here
Looking ahead to an “economy fit for new age optimism” following “the worst economic shock ever seen”. We’ve summarised from a business perspective some of the key headlines.
- Capital investment – looking at buying any kit?
As well as the introduction of the capital allowances super deduction announced back in March, the annual investment allowance will now remain at £1million until March 2023 (it was due to return back to £200k at the end of the year). This, the new investment relief for green technologies, and the introduction of business rates improvement relief for properties (from 2023) means that now is a great time to consider your options for capital expenditure.
- Beers, wines and spirits – do you sell draught or brew your own cider?
The small producer and draught relief will be welcome for all of our local breweries and pubs. Rishi’s message was “the stronger the drink” the “higher the rate”! Plus, the planned alcohol duty increase will be cancelled. For sparkling wine drinkers, there will be no duty premium.
- Business rates – are you in hospitality retail and leisure and pay business rates?
Incredible news here for the hospitality, retail and leisure industries. These businesses will benefit from a 50% discount in business rates.
- Travel – do you travel across the country as part of business?
As fuel prices hit an 8 year high, the planned fuel duty increase has been scrapped, which will be welcomed by many. The Government has also announced a lower rate of air passenger tax for domestic flights, allowing cheaper travel between UK countries. HGV you won’t see the road tax rises this time too!
- Research and development – do you invest in improving your product or service, and its tricky to do and you’re not sure of the outcome?
The Government continue to support investment in R&D, and will have a UK focus on a modernised tax credit regime from April 2023. We’ll keep our eyes to the ground on this one and provide further detail when it becomes available
- NLW and universal credit – time to level the field
As anticipated, the national living wage has been increased to £9.50. This means a full time worker on the living wage will get a pay rise of more than £1,000 per year.
The planned cut in universal credits has been challenged immensely in the past few months, so it will be welcome news for many to see the taper reduced from 63p to 55p/£1. But is this enough?