Will the mini budget help your business?
There were several items in the mini budget that the Government claims will help businesses.
- 45% higher rate of income tax abolished for England, Wales and Northern Ireland taxpayers
- One single higher rate of income tax of 40% from April next year
- Reverse recent rise in National Insurance (NI) from 6 November
- Cancel UK-wide rise in corporation tax which was due to increase from 19% to 25% in April 2023
- IR35 rules – the rules which govern off-payroll working – to be simplified
- Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely
- New and start-up companies able to raise up to £250,000 under scheme giving tax relief to investors
- Setting up investment zones with 38 local areas in England
It has been argued that most of these measures will help those at the top end of the economy, but the government expects the benefits to “trickle down” to the rest of the economy.
Only time will tell whether it will work.