Spring Budget 2023 : Key Points

Following the Jeremy Hunt’s announcements in the Spring Budget, here's a brief overview of what we think are the key points to take away.

Economy

• The office for budget responsibility predicts the UK will avoid recession this year, but the economy will shrink by 0.2%
• UK’s inflation rate predicted to fall from 10.7% to 2.9% this year

Business & Trade

• Main rate of corporation tax, paid by businesses on taxable profits over £250,000, confirmed to increase from 19% to 25%
• Companies with profits between £50,000 and £250,000 to pay between 19% and 25%
• Companies able to deduct investment in new machinery and technology to lower their taxable profits
• Tax breaks and other benefits for 12 new Investment Zones across the UK, funded by £80m each over the next five years
• Reduced paperwork for international traders, who will also be given longer to submit customs forms under streamlined rules

Pensions

• £1.07m cap on maximum amount people can save tax free in pension over their lifetimes will be abolished from April 2023.
• Annual tax-free allowance increased from £40,000 to £60,000, an incentive for certain people, in certain sectors to remain in employment longer.

Energy costs

• Energy subsidies limiting typical household bills to £2,500 a year will be extended for 3 months, until the end of June 2023.

Encouraging a return to work

• 30 hours of free childcare for working parents in England will be expanded to cover 1 & 2 year olds from April 2024. This is paid upfront for parents moving into work or increasing hours, 15-30 hours free childcare from age 9 months and a funding boost for childminders & nurseries.
• New voluntary employment scheme for disabled people in England and Wales, called Universal Support.
• Tougher requirements to look for work and increased job support for lead child carers on universal credit.
• £63m for programmes to encourage retirees over 50 back to work, "returnerships" and skills boot camps.
• Immigration rules to be relaxed for five roles in construction sector, to ease labour shortage.

Other

• Prison sentences for those convicted of marketing tax avoidance schemes.

ADVANCE service & support

You will have heard us talk a lot about our focus and commitment to service, and here is a brief reminder of some of just one aspect of our commitment to providing world class service. 

• Our business goal is to pick up every phone call within 3 rings
• Contractors, Freelancers & agencies contact us and expect their calls to be answered, and our teams are extremely focused and passionate about delivering this level of service
• Over 99.4% of our calls are answered within 3 rings. We are working tirelessly to increase this percentage

We hope this information will be useful for you as we enter the new tax year. As always, please contact ADVANCE or your Client Relationship Manager on 01244 564 564 for any support you require.