UK SPRING BUDGET 2023
WHAT CHANGES FOR YOUR BUSINESS?
The announcement of the Spring Budget on 15th March showed us further action to deliver on 3 of the Prime Minister’s 5 priorities: halving inflation, growing the economy, and getting debt falling.
We had a look and summarised the key takeaways for small businesses…
Businesses with taxable profits over £250,000 will see an increase in Corporation Tax from 19% to 25%, while those with profits between £50,000 and £250,000 will pay between 19% and 25%. No changes will affect businesses with profits of less than £50,000.
The freeze on fuel duty has been extended for another year, ensuring the 5p cut to petrol and diesel remains in place until April 2024.
To reduce taxable profits, businesses can now deduct investment in new machinery and technology through full expensing instead of the previous super-deduction.
Although alcohol taxes will increase with inflation, the rise in Draught Relief is intended to benefit pubs.
The creation of 12 new Investment Zones across the UK, including at least one in Scotland, Wales, and Northern Ireland, aims to boost economic growth in specific regions.
The pension Lifetime Allowance, currently at £1.07m, has been abolished, and the annual tax-free allowance will rise by 50% from £40,000 to £60,000.
R&D tax credits for SMEs will be enhanced for businesses with R&D as 40% of turnover after the significant reduction in SME R&D tax credits in November.
Programs like skills boot camps and apprenticeships are being introduced to encourage people over 50 to return to work.
A new voluntary employment scheme, Universal Support, will be available for disabled people and those with health conditions in England and Wales.
The expansion of free childcare for working parents in England to cover one and two-year-olds by September 2025 will be introduced in phases from April 2024, starting with 15 hours.
Rishi's Tools. Photo by Adonyi Gábor from PxHere
No changes will be made to the Energy Bills Discount Scheme for businesses, which will be in place from April 2023 to March 2024.
Households will continue to receive energy support for an additional three months until the end of June.
Small businesses that trade internationally will have customs declarations eased.
If you want to know more about the new changes in detail, have a look at the gov.uk website: https://www.gov.uk/government/publications/spring-budget-2023/spring-budget-2023-html