Kwasi Kwarteng the Chancellor, revealed a so-called Mini-Budget on Friday – and we’ve already analysed what it means for you and your business. We will be looking more closely at the impact of changes and guiding our clients specifically for their business situation over the next few days. The top 3 things you need to know today are: 

1) Corporation tax increase cancelled (for now).  
The planned introduction of a 25% corporation tax rate has been abolished. Therefore the rate of corporation tax will remain at 19%.

2) Top rate of income tax abolished 
The 45% income tax rate has been abolished and those paying that will fall within the 40% rate instead. Further, as a result of this, dividend tax rates will revert to 7.5% and 32.5% next year (from 8.75%, 33.75% and 39.35%).

3) Basic rate of income tax cut to 19%
From next April, the basic rate of income tax will be cut from 20% to 19%. This will mean 31 million people will be better off by an average of £170 per year, according to the Treasury. It is pleasing to see efforts being made to tackle the cost of living crisis.

Given the above points there is some scope to consider tax planning in advance of these changes. Please contact Murray to discuss further.

Download our free guide to the Mini Budget by clicking here – or on the image below.