The ‘not-so-Mini’ Budget – Parody

Formar Chancellor Kwasi Kwarteng announced “the biggest package in generations”. With total tax cuts expected to exceed £45bn over the next 5 years, this ‘mini’ budget ended up costing Kwasi and Liz their jobs!

We have studied today’s announcement and analysts’ comments and have highlighted below what we believe to be the most key and relevant points for our clients.

Income Tax & National Insurance

The key points on personal taxes are as follows:

  • The 1.25 percentage point increase in national insurance announced in the prior budget has been scrapped. The Chancellor suggests that this will be a saving of £330 per year on average. This change comes into effect from 6th November 2022.
  • There were no changes announced in respect of Personal Allowance (the amount of income a person earns before paying tax) which will remain frozen at £12,570 for the next four years, as per the prior budget.

Corporation Tax

The key points on company taxes are as follows:

  • The Annual Investment Allowance (AIA) for capital allowances will now be set at £1m permanently. This was previously set to return to £200k in March 2023.
  • As mentioned previously the scrapped increase of national insurance is beneficial to company owners too. The reduction in employers’ national insurance will directly reduce employment costs for all UK companies.

Energy Bills

As announced previously, the Energy Price Guarantee will cap the unit cost of energy for only 6 months. This should ensure a typical household receives annual bills of around £2,500 during this period.

Stamp Duty

Stamp Duty has received some significant cuts, with stamp duty being scrapped on property purchases up to £250k, which is double the previous amount of £125k. First-time buyers get an exemption on properties up to the value of £425k. These changes are effective today.

Bad news for those that like their booze!

Alcohol Duty will not be frozen from February 2023.

*This should not be used as a definitive guide since individual circumstances may vary. Specific advice should be obtained from the team, where necessary.

trust pilot

Best we have had!

Billy has taken over our accounts and guided us through the entire process.
Communication from the...

Cobra Electrical Services Ltd

Changed accountants and the difference is incredible

Changed accounts around 2 years and my gosh, the difference has be...

The Family Health Hub

In my 20th year with these guys

In my 20th year with these guys. The service is great. They’ve changed and adapted as w...

Jonathan D

Baverstocks are amazing!!!

Baverstocks are amazing! Their understanding and knowledge of how a start-up business operat...

Charlie

Strong , agile business support

Engagement from the outset has been outstanding, both business partners to our business...

David Borthwick

Baverstocks have been very helpful & patient with me during the process of setting up my business. As I am completely new to this process, their guidance & reassura...

John McNamara

We have worked with Baverstocks for nearly five years since our company inception. Their service has been unwavering in their support, ideas, realignment and speed of deliv...

Nikki Todd

100% Recommend

I would absolutely recommend Baverstocks - they're quick and informative and always willing to help with...

Katie R