Mini Budget 2022

The main headlines in last week’s dramatic mini budget were well reported, which will see the planned 1% cut in the basic rate of income tax brought forward a year to April 2023, at which time and somewhat controversially the 45% additional tax rate will be scrapped, as is the plan to increase the rate of corporation tax rate from 19% to 25%. National Insurance will also be reduced in November, with the rates of N.I. reverting to those that we started the tax year with.

Other points of interest were a doubling of the nil rate threshold of SDLT for residential purchases, and an increase to First Time Buyers’ Relief. There are also further incentives to encourage investment in start-ups, with the limits for SEIS relief being significantly extended. Employers will be able to grant options worth £60,000 to employees via the Company Share Ownership Plan (CSOP) share schemes, double the previous cap of £30,000. A slightly odd one this, as CSOP schemes are not particularly popular as they are generally only used by businesses that do not qualify for the more generous EMI scheme.

There was also interesting news for those who work on a consultancy basis either through their own limited company or as a sole trader, as recent changes to the off payroll rules (IR35) were announced, meaning that from April 2023 the obligation for determining employment status will revert back to the worker. This measure seemingly signals a desire to stop discouraging consultants from providing their services through their own companies.

If you would like to read more on the Mini Budget, please read our detailed report on the proposals here: Lewis Brownlee – Mini Budget Report 2022

If you have any questions on any of the subjects discussed, then please get in touch! You can call on 01243 782 423 or head to our contact form.

We also update our YouTube Channel regularly with new content, see here: Lewis Brownlee YouTube channel