Another Budget Update- 17 Nov

by | Nov 18, 2022 | 0 comments

Another Budget Update! And Other Smarter News 17/11/2022

We hope that everyone is well. The weather seems to be a bit wetter than we’ve been used to for quite a while and it has suddenly started to turn cold! Hopefully we will see some drier and crisper days over the next few weeks.

At Smarter Accounting, the tax return season enters full swing. Remember that self-assessment tax returns must be filed by 31 January 2023, we are not expecting any extensions this time. Therefore, if you need us to work on your return and you have not already got your records in, then get the records to us as soon as you can.

Budget Update
It doesn’t seem like long ago that we provided a budget update, in fact this is our third in as many months! Surely time for another Prime Minister before Christmas!

On a serious note, we know the UK public finances have been in a bit of a mess and earlier today the Chancellor gave his Autumn Statement, with the intention to balance the finances and reassure the markets that the economy is being looked after. This current Government seem a safer pair of hands with the public finances, but the deficit is huge, and we have seen the announcement of expected tax increases and spending reductions.

The main points are:

  • Tax Allowances – A great deal of the additional tax revenues have come from mainly freezing allowances
    • Annual personal allowance frozen until April 2028 at £12,570
    • Basic Rate Tax thresholds also frozen until April 2028
    • Top rate of tax remains the same at 45%, but the point at which that is paid has reduced from £150,000 to £125,140
    • National Insurance and Inheritance Tax thresholds also frozen until 2028
    • Capital Gains tax allowances will reduce from £12,300 to £6,000 in April 2023 and then to £3,000 from April 2024 (consider making disposals sooner rather than later to make use of allowances!)
    • Dividend Tax 0% band will reduce from the current £2,000 per year to £1,000 per year in April 2023. It will then reduce to £500 per year from April 2024
  • Energy Crisis – As announced previously the Government have been reviewing the support they give to households from April 2023 and the Chancellor today announced the following:
    • Typical bills will still be capped from April 2023, but at £3,000 per year, up from the £2,500 support level in place until March 2023
    • No mention of support for businesses from April 2023
    • Households of means tested benefits will receive an additional £900 support next year (up from £600 in 2022)
    • £300 will also be given to pension households and £150 for individuals on disability benefit
    • Windfall tax on profits of oil and gas firms increased from 25% to 35% and extended to March 2028
  • Wage and Benefit Increases
    • Minimum wage for those over 23 will increase from £9.50 to £10.42 from April 2023
    • State pension along with means-tested and disability benefits to increase by 10.1% in line with inflation
  • Other Items
    • Lifetime cap on Social Care costs in England that was due to come into effect from October 2023 delayed by two years
    • Electric Cars, Vans and Motorcycles to pay road taxes from April 2025

Smarter Recruiting Now!

We are currently recruiting to both offices and at all levels. We are particularly looking for anyone with practice experience.  If you know anyone who may be interested, then please ask them to contact us!

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Best wishes and stay safe,

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