Today, the new Chancellor Kwasi Kwarteng has announced his mini-budget, but what does it mean for individuals and for businesses? We thought we’d take the time to go over a few of the announced policies and how they will affect you.
Taxation:
- Income Tax: This will be reduced by 1p. That may not seem much, but it amounts to £74 a year saved for those on £20,000, £174 saved if you are on £30,000 and will keep rising the more you earn.
- National Insurance: If you remember, Rishi created an uplift in April from 12% to 13.25% to garner more funding for the NHS and Social Care. However, it is very likely this uplift will be reversed. If you are earning around £30,000, you will be looking at saving around £218 a year if this goes ahead
- Threshold: The top income tax bracket at 45% will be abolished, so anyone who is earning over £150,000 a year will be saving a lot of money
- Corporation Tax: Clients will be relieved to know that the original proposed jump in Corporation Tax, which was going to be from 19% to 25%, will be scrapped.
Investment Zones:
There are 38 areas across the UK which the Government recognizes needs further investment and support. These areas ‘will be looking at accelerated tax reliefs on structures and buildings, with 100% tax relief on qualifying investments in plant and machinery.’ In these areas, road, rail and energy projects will have previous restrictions removed in an attempt to boost progress. Of the 38 areas, Leicestershire County Council is one of them.
Cost of living:
Bills have been getting absurdly high, with it looking like they would be getting as high as £6,500 a year for households. This has now been avoided with a freeze at £2,500 a year. It has been confirmed that the original £400 support for homes will stay.
If you fancy going for a pint, you may also be relieved to know that duty for beers, ciders, wine and spirits will not be going up either.
Universal Credit:
Part-time workers will face having their benefits reduced if they do not take ‘active steps’ to increase their hours or pay. They will need to be working at more than 15 hours a week at the National Living Wage. If you are over 50, you will be allowed more time with a work coach to support getting back into employment.
Remember, if you are looking for more part-time work, or maybe want to go full-time, we have plenty of opportunities on our Jobs Board, so get in touch today!!