UPDATED - Oct 2022
Since the mini-budget a lot has happened in the UK economy and in UK politics.
What has come from that is a reversal to many of the below announcements.
Those that still stand are:
The increase in National Insurance that was introduced in April 2022, is to be reversed, which means that from 6th November, we'll just be in the same position as we were in March 2022. So whilst it is a decrease, in reality it was only really a 7 month increase.
Original blog post:
What does the mini-budget mean for small business?
The mini-budget on 23rd September 2022, announced £45 billion of tax cuts. This is the biggest tax cutting exercise since 1972 dubbed as Barber's "dash for growth". That ended in disaster for the country and was known as the worst in modern times, so let's hope that the outcomes of the mini budget do not mirror the past.
But what does the mini-budget mean for small business?
The answer is actually, not very much.
We have heard that IR35 is to be repealed, which is great for contractors, and will be positive for those running small businesses who operate as contractors.
But other than that group, very little help is on offer.
The Government announced that the planned rise in Corporation Tax will not go ahead - but since it's not already implemented, that is no change to the current situation.
The increase in National Insurance that was introduced in April 2022, is to be reversed, which means that from 6th November, we'll just be in the same position as we were in March 2022. So whilst it is a decrease, in reality it was only really a 7 month increase.
There are also Income tax cuts. But note, these are only applicable in England and Wales, since Income tax is devolved.
In England and Wales the basic band is to be reduced to 19% and the 45% band to be abolished. But given the way that most small business owners pay themselves, this will make no difference to you as well.
Overall, as you can see, unfortunately, it's not good reading for the UK small business owner as we head into this recession and continue to experience the affects high inflation, and the cost of living crisis.
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