The RT Hon Kwasi Kwarteng MP published the government’s Growth Plan 2022 on the 23rd September. It is being labelled as measures to a deliver pro-growth, simplified tax system to support business investment across the UK. Please note however that if your business is in Wales some of the changes don’t affect you as they may be devolved taxes.

Measures announced:

• the Health and Social Care levy to be scrapped.  Therefore reducing National Insurance contributions by 1.25% from 6 November 2022.  This is a UK wide change.
• basic rate of Income Tax to be reduced to 19% from April 2023.
• Corporation Tax to remain at 19% from April 2023, this is instead of the expected rise to 25%.
• Off-Payroll Working rules repealed.
• Annual Investment Allowance (AIA) will be set at £1 million permanently
• new investments zones created where enhanced tax reliefs will be offered for Stamp Duty Land Tax (SDLT), Enhanced Capital Allowances, Structures and Buildings Allowance and Employer National Insurance contributions.
• an expansion of the Seed Enterprise Investment Scheme (SEIS) – doubling the annual investor limit to £200,000, increasing the gross asset limit to £350,000
• changes to the Company Share Option plan (CSOP) scheme – increasing the employee share option limit from £30,000 to £60,000

If you’re not sure how any of this affects your business you should book a meeting with your accountant now.  We’re best placed to help you know and understand your numbers and to make the right decisions for your business.

Contact us for a free, no obligation chat to see how we can help you grow your business.

Source: https://www.gov.uk/government/news/chancellor-announces-new-growth-plan-with-biggest-package-of-tax-cuts-in-generations