Mini-Budget U-Turns and what it means for small businesses

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We may have whiplash from the violent u-turns that are taking place, but we wanted to have a place which summarised what from the mini budget still stands and how it applies to small business owners: 

  • Stamp Duty cut will remain in place as already actioned. This means that If you’re looking at buying a new home, then the first £250k will no longer attract stamp duty (If you’re a first time buyer, this relief has been extended to £425k with the ability to buy a house worth £625k)
  • National insurance cut (removing the health and social care levy) will also remain in place, however dividend tax will not reduce as expected in April.  This means that from 6 November, employees and employers will not pay the additional 1.25% they have been paying since April 2022.
  • The energy bill relief scheme will remain in place and as already had been announced will be up for review and will remain in place until March, from then Hunt suggested there was going to be a longer plan of action in place but Hunt will now focus on those that need it and it will be drastically cut back. 
  • The annual investment allowance will still be going ahead too. The annual investment allowance will now be permanently at £1m meaning businesses will continue to be able to invest in plant, machinery, and assets in their business (depending on what they are, it’s never 100% simple) and get full relief in the year of purchase up to that level (I mean I’m not intending on spending £250k anytime soon on desks and other assets, but if that’s in your budget hooray!)

Also, Hunt has now confirmed that they are not continuing with the reversal of off-payroll working reforms.

Corporation tax will go back to profits over £50k will be taxed at 25% and will mean a marginal rate of tax will be introduced.

Personal tax bands will mean the first band will remain at 20% for earnings up to £50,270 rather than 19%. 

Read the detail here:  https://www.gov.uk/government/news/chancellor-brings-forward-further-medium-term-fiscal-plan-measures

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