-
info@adeptaccountax.com
-
Mon - Sat: 9:00 AM - 7:30 PM
info@adeptaccountax.com
Mon - Sat: 9:00 AM - 7:30 PM 
The Mini Budget 2022 introduces significant tax adjustments for individuals. The 1.25% National Insurance rise will be reversed from 6 November 2022. Income tax will see a reduction, with the basic rate cut to 19p from April 2023, and the 45% top rate abolished in favor of a single 40% rate. For Scottish taxpayers, different income tax bands will apply. Stamp duty thresholds in England and Northern Ireland will be raised, providing relief for first-time buyers. Overseas visitors will benefit from VAT exemptions on shopping, while pension funds will gain from reforms easing UK asset investments. Additionally, benefits will be reduced for those not meeting job search commitments.
Reversal of National Insurance Increase
A 1.25% rise in National Insurance to be reversed from 6 November 2022.
Income Tax Cuts and Rate Changes
Basic income tax rate reduced to 19p from April 2023; 45% top rate abolished in favor of a 40% single top rate.
Introduction of a Single Higher Tax Rate
From April 2023, a single 40% higher tax rate to replace the 45% rate, with Scottish rates differing.
Stamp Duty Reductions and Reliefs
Increased thresholds for stamp duty in England and Northern Ireland, with higher relief for first-time buyers.
VAT Exemption for Overseas Shoppers
Elimination of sales tax for visitors shopping in the UK.
Pension Investment Reform
Removal of the pension charge cap to facilitate easier investment in UK assets.
Reduced Benefits for Job Search Non-Compliance
Benefits reduced for individuals failing to meet job search requirements.
The Mini Budget 2022 brings significant changes for businesses. The 1.25% increase in Employers National Insurance will be reversed from 6 November 2022. The planned rise in Corporation Tax has been cancelled, keeping it at 19%. The controversial IR35 reforms will be repealed from April 2023, benefiting contractors. Investment Zones will offer tax cuts for businesses over a 10-year period. Additionally, there will be no Employers National Insurance for employees earning under £50,000, no Stamp Duty Land Tax (SDLT), and no business rates. The Energy Bill Relief Scheme will provide discounted energy prices, and the Annual Investment Allowance will be permanently set at £1 million starting April 2023.
Reversal of Employers National Insurance Increase
The 1.25 percentage point rise in Employers National Insurance, introduced in April 2022, will be reversed from 6 November 2022.
Corporation Tax Freeze
The planned increase in Corporation Tax has been cancelled, keeping the rate at 19%.
IR35 Reform Repeal for Contractors
The 2017 and 2021 IR35 off-payroll working reforms will be scrapped, effective April 2023, benefiting the contractor industry.
Introduction of Investment Zones
Tax cuts for businesses operating in designated Investment Zones will be implemented for 10 years.
Exemptions on National Insurance, SDLT, and Business Rates
No Employers National Insurance for employees earning less than £50,000; elimination of Stamp Duty Land Tax (SDLT) and business rates.
Energy Bill Relief Scheme
Automatic relief on energy bills for businesses from October 2022 to March 2023, with government-supported prices for electricity and gas.
Permanent Increase in Annual Investment Allowance
The Annual Investment Allowance limit will be permanently set at £1 million from April 2023.
The latest financial measures provide substantial relief and opportunities for both individuals and businesses. For individuals, the reversal of the National Insurance rise, cuts in income tax rates, and changes to stamp duty and pension rules promise to ease financial pressures and simplify the tax system. On the business front, the reversal of National Insurance increases, cancellation of the Corporation Tax rise, and the repeal of IR35 reforms offer significant benefits, while new Investment Zones and extended allowances aim to stimulate growth and investment. These changes reflect a broader effort to support economic stability and growth across various sectors.
