News
Mini Budget 2022
23/09/2022
The Chancellor Kwasi Kwarteng announced his new "Growth Plan" today:
The full Growth Plan 2022 documents can be found here.
23/09/2022
The Chancellor Kwasi Kwarteng announced his new "Growth Plan" today:
- 45% additional income tax rate on annual income above £150k is to be abolished from 06 April 2023.
- Additional rate taxpayers will be given a personal savings allowance of £500 in line with higher rate taxpayers.
- Basic rate of income tax to be cut to 19% from 06 April 2023, a year earlier than originally planned.
- April's increase of 1.25% in National Insurance rates for employees, employers and self-employed will be reversed from 06 November 2022, the original increase in the threshold from July 2022 will not be reversed.
- Increase of 1.25% to dividend tax rates introduced in April 2022 will be scrapped from April 2023.
- Upper rate of dividend tax will be cut from 39.35% to 32.5%.
- The 6% corporation tax rise planned for April 2023 (see Budget 2021 below) will no longer go ahead, current rates will be set at 19%.
- Plans to simplify or abolish the IR35 off payroll working rules for the public and private sector from April 2023.
- Annual investment allowance set at £1m on a permanent basis, rather than reverting to £200k as originally planned for April 2023.
- Threshold for stamp duty land tax has been doubled to £250k for all home purchases with immediate effect, with first-time buyers threshold increasing from £300k to £425k. The maximum property value for first-time buyers' relief has risen from £500k to £625k.
- Seed Enterprise Investment Schemes level of tax-free investment will increase to £250k from April 2023 for new and start-up companies.
- Planned increases in duty rates for beer, wine and cider will be cancelled.
The full Growth Plan 2022 documents can be found here.
Spring Statement 2022
23/03/2022
The Chancellor Rishi Sunak has delivered his 2022 mini-budget today. Below is a brief summary of the main points:
Further details and guidance can be found on the GOV.UK website here.
23/03/2022
The Chancellor Rishi Sunak has delivered his 2022 mini-budget today. Below is a brief summary of the main points:
- Fuel duty to be reduced by 5p per litre from 6pm this evening for 12 months.
- 0% VAT for households installing solar panels, heat pumps and insulation from April 2022.
- National Insurance Contributions (NICs) threshold to increase by £3,000 to £12,570 from July 2022 in line with the personal income tax allowance, although the 1.25% increase on National Insurance rates from April 2022 still stands. The threshold increase only applies to class 4 NICs (self-employed) and class 1 NICs for employees.
- Increase in small businesses NICs employment allowance from £4,000 to £5,000 for the 2022/23 tax year.
- Temporary 50% business rates relief for retail, hospitality and leisure businesses.
- Basic rate of income tax rate to reduce to 19% from 2024.
Further details and guidance can be found on the GOV.UK website here.
Fifth SEISS Claim
14/07/2021
The fifth and final Self Employment Income Support Scheme grant will be available to claim from late July 2021. This grant will cover the months from May to September 2021.
The level of grant depends on whether your turnover for the 12 months from April 2020 (starting between 01-06 April) has dropped by more or less than 30% from the previous 12 month period (2019/20), or 2018/19 if 2019/20 was not a normal year due to a long period of sickness for example. The turnover figure should exclude any grants or coronavirus support payments.
If your turnover has dropped by less than 30%, then the grant will be calculated at 30% of 3 months' average trading profits and capped at £2,850. If your turnover has dropped by 30% or more, then the grant will be based on 80% of 3 months' average trading profits and capped at £7,500.
Again, grants can only be claimed by the individual, not by an accountant or tax agent on your behalf.
To be eligible you must:
Further detailed guidance from HMRC can be found here.
14/07/2021
The fifth and final Self Employment Income Support Scheme grant will be available to claim from late July 2021. This grant will cover the months from May to September 2021.
The level of grant depends on whether your turnover for the 12 months from April 2020 (starting between 01-06 April) has dropped by more or less than 30% from the previous 12 month period (2019/20), or 2018/19 if 2019/20 was not a normal year due to a long period of sickness for example. The turnover figure should exclude any grants or coronavirus support payments.
If your turnover has dropped by less than 30%, then the grant will be calculated at 30% of 3 months' average trading profits and capped at £2,850. If your turnover has dropped by 30% or more, then the grant will be based on 80% of 3 months' average trading profits and capped at £7,500.
Again, grants can only be claimed by the individual, not by an accountant or tax agent on your behalf.
To be eligible you must:
- have submitted your 2020 self-assessment tax return by 02 March 2021.
- have traded in both the tax years ended 05 April 2020 and 2021.
- be currently trading but are impacted by reduced demand due to coronavirus, or have been trading but are temporarily unable to do so because of coronavirus.
- be intending to continue to trade.
- reasonably believe there will be a significant reduction in your trading profits due to the impact of coronavirus in the period from 01 May 2021 and 30 September 2021.
- have trading profits of no more than £50,000 and at least equal to your non-trading income.
Further detailed guidance from HMRC can be found here.
Fourth SEISS Claim
22/04/2021
The fourth Self Employment Income Support Scheme grant is now available for eligible self-employed individuals. This grant covers the months from February to April 2021 and must be submitted by 1st June 2021.
The grant will be capped at £7,500 and set at 80% of the average trading profits and takes into account the 2020 tax returns.
Grants can only be claimed by the individual, not by an accountant or tax agent on your behalf.
To be eligible you must:
More detailed information from HMRC can be found here and if you believe you're eligible you can submit your claim here.
22/04/2021
The fourth Self Employment Income Support Scheme grant is now available for eligible self-employed individuals. This grant covers the months from February to April 2021 and must be submitted by 1st June 2021.
The grant will be capped at £7,500 and set at 80% of the average trading profits and takes into account the 2020 tax returns.
Grants can only be claimed by the individual, not by an accountant or tax agent on your behalf.
To be eligible you must:
- have traded in the 2019/2020 tax year and submitted your tax return by 2nd March 2021.
- have traded in the 2020/2021 tax year.
- be currently trading but are negatively impacted due to coronavirus, or are temporarily unable to trade due to coronavirus.
- declare that you intend to continue trading.
- reasonably believe there will be a "significant reduction" in your trading profits, due to reduced business activity, capacity, demand or inability to trade due to coronavirus between 1 February and 30 April 2021.
- keep evidence showing how your business has been impacted.
More detailed information from HMRC can be found here and if you believe you're eligible you can submit your claim here.
Budget 2021
03/03/2021
The Chancellor Rishi Sunak has delivered his 2021 budget. Below is a summary of the main points to help the UK recover from the COVID pandemic.
Further details and guidance on all of the above can be found by visiting the GOV.UK website
- The furlough scheme is to be extended until the end of September 2021. The furlough will continue to cover up to 80% of an employee's salary for hours they cannot work up to a maximum of £2,500 per month. Employers will need to contribute 10% of the salary in July 2021 with the government contributing 70%, then in August & September 2021 employers will contribute 20% with the government contribution being 60%.
- The 4th Self Employment Income Support Scheme (SEISS) will be claimable from late April until 31st May 2021 covering the months February - April 2021 and will be set at 80% of 3 months average trading profits (capped at £7,500), taking into account the 2020 tax returns. More details can be found here.
- The 5th and final SEISS grant will cover the months May - September 2021 and claims can be made from late July. The grant will be based on how much the businesses turnover had reduced in the year April 2020 - April 2021. If the turnover has reduced by at least 30% then the grant will be 80% of the 3 months average trading profits, capped at £7,500. If turnover is < 30% down then the grant will be 30% of the 3 month average capped at £2,850.
- Restart grants available for non-essential retailers up to £6k per premises and hospitality venues up to £18k depending on their rateable value.
- The National Living Wage for those aged 23 and above is set to increase to £8.91 from 1st April 2021.
- The apprenticeship hiring incentive has been increased to £3,000 and been extended to September 2021.
- The Universal Tax Credit increase of £20pw has been extended for six months.
- Business rates holiday extended for another 3 months until the end of June 2021 for gyms and non-essential retail premises. Then discounted to 1/3 of the normal charge for the 6 month period to the end of December 2021.
- The 5% reduced rate VAT for hospitality, accommodation and attractions has been extended until the end of September 2021. Then a temporary 12.5% VAT rate will be introduced until the end of March 2022.
- Personal tax thresholds are to be frozen until 2026 after a miserly increase in April 2021 to the personal allowance (£12,570) and the basic rate band (£50,270).
- Corporation tax rate is due to increase from 19% to 25% in April 2023. This will apply to companies with profits in excess of £250k. Companies with profits of £50k or less will fall into the small profits rate and continue to be taxed at 19%. A tapered rate will be introduced for profits above £50k.
- A new 130% super-deduction first year capital allowance for qualifying plant & machinery assets and a 50% first year allowance for qualifying special rate assets will be introduced for 2 years from April 2021.
- Coronavirus Business Interruption Loan Scheme (CBILS) is to be replaced with a new recovery loan scheme. Businesses of any size can apply from £25k to £10m up to the end of 2021. The government will provide a guarantee to lenders of 80%.
- The stamp duty threshold of £500k has been extended until 30 June 2021. This is then reduced to £250k up to the end of September 2021 before returning to the normal £125k.
- A new mortgage guarantee scheme will enable UK homebuyers to secure a mortgage up to £600k with a 5% deposit.
- No change to Inheritance tax threshold of £325k until April 2026 and VAT threshold of £85k until April 2024.
- Contactless payment cap has increased to £100.
- Planned increase in alcohol and fuel duties to be frozen.
Further details and guidance on all of the above can be found by visiting the GOV.UK website