The government has been bold with tax cuts which will impact both businesses and individuals.
Individuals have been given good news with the cut in basic rate tax by 1% being brought forward early from April 2023. Additional rate tax payers will be very happy with the scrapping of the 45% rate where earnings are above £150,000.
The decision to scrap the increase in National Insurance rates will be welcomed by businesses at a time where energy costs are increasing significantly which will aid businesses ability to cope.
Businesses have also been given a boost with the scrapping of Corporation tax rate increasing which was due to come in from April 2023. The rate will now remain at the current level of 19%. The annual investment allowance was also kept at the same level of £1m which was due to decrease to £200,000 from April 2023. Whilst this is a positive move for businesses, this is unlikely to be seen as a significant opportunity by many as the levels have been set since 1 January 2019. At a time where costs are increasing with the high inflation, focus will be on preventing balance sheet values from falling.
If you would like a review of future personal or company tax liabilities then please get in touch.
Craig Weavers – Partner