What you need to know about this year’s budget
The Chancellor, Jeremy Hunt, has announced his spring budget for the UK on 15th March 2023.
With positives of not entering into a technical recession this year, and inflation due to more than halve and reduce to 2.9% by the end of 2023, here are some key takeaways from this year’s budget announcement.
Corporation tax on profits over £250,000 is due to increase to 25% (from 19%) in April 2023, but businesses will be able to offset 100% of UK investments against their profits to bring down these tax bills.
It was also proposed that business investment will increase by 3% every year for the next 3 years.
SMEs may welcome the news of an “enhanced credit” for those who spend 40%+ of their total expenditure on research and development.
Jeremy Hunt has also assigned an additional £400m to improve the mental health and musculoskeletal workplace support, preventing people being forced to leave work due to sickness.
The Energy Price Guarnetee (EPG) is being extended.
The Energy Rebate scheme has not been extended and will end in April 2023.
From July 2023, the Prepayment Premium on prepay meters will be abolished; saving more than 4 million families approximately £25 a year on energy bills.
Up to £600m in tax relief on energy efficiency measures has been announced for businesses, in a bid to reduce energy use by 15%.
A new apprenticeship, called a returnership, will be created for those aged 50 and older wanting to return to work.
Pensions and Investment
The lifetime allowance has been scrapped, with Jeremy Hunt hoping that it will stop 80% of NHS doctors from receiving a tax charge.
The pensions annual tax-free allowance will rise by 50% from £40k-£60k.
12 new investment zones will be eligible for £80m in funding and £200m in additional funding will be available for local regeneration projects.
Parents working 16 hours a week will get 15 hours free childcare for qualifying children (children aged 9month to 5 years), with a staggered start beginning in April 2024.
From September 2025 it is proposed that single working parents of children under 5 will get 30 hours free childcare per week.
There were also some key announcements regarding fuel duty, alcohol duty, defence and even dreaded potholes!
You can find out more information via the Government website here.
Do you need help knowing what your business is and isn’t entitled to as part of the new budget? Contact us today for more information, advice and guidance.