Autumn ‘mini’ budget announcement 2022 – updated 17/10/22

Following the Chancellor’s ‘mini’ budget announcement, we’ve broken down some of the key points to make them more digestible.

This plan for growth has unveiled both expected and unexpected changes and will impact almost everyone, personally and/or professionally, including changes to income tax, the energy price cap, stamp duty, and National Insurance.

As of 17th October 2022, there have been major changes to the original statement given on 23rd September 2023. The most recent announcement has confirmed that many of the original plans have been scrapped in order to sustain financial stability, in the UK, over the coming years.

There is clearly a lot of uncertainty surrounding the country’s financial situation, but be assured that we are keeping our ear to the ground to ensure our clients receive the latest relevant information.

Here is what we know so far:

Updated on 17th October 2022 at 11am, after Jeremy Hunt’s early announcement.

(Previously updated 14th October 2022, after Liz Truss’ 14:30 conference)

We will continue to update this page as more guidance is released.

Corporation Tax – Scrapped (14/10/22)

The rise in corporation tax, which was due to increase from 19% to 25% in April 2023, will be scrapped. This will make a huge difference to those trading as Limited Companies.

14/10/22 update: 

Ms Truss has now announced that she is dropping this change. Uk corporation tax will go up from 19% to 25% in April 2023 after all.

Income Tax – Scrapped (17/10/22)

From April 2023 there will be a cut in the basic rate of income tax from 20% from 19%.

Also, the 45% higher rate of income tax for anyone earning over £150,000 per year will be abolished.

14/10/22 update:

Before he was let go from his position as Chancellor, Mr Kwarteng U-turned on the higher rate change. He announced that the scrapping of the 45% rate would not go ahead after it has proved “a massive distraction” to the rest of the mini-budget.

Update 17/10/22 11am:

The original statement, to reduce the basic rate of income tax from 20% to 19% in April 2023, has now been scrapped.

National Insurance – still happening

The planned rise in National Insurance (NI) is to be reversed from 6^th November 2023. Workers and employers have paid an extra 1.25p into the pound since April 2022, but this will stop.

Update 17/10/22: Still going ahead.

Work and investments

IR35 rules (the rules which govern off-payroll working) are to be simplified.

Annual investment allowance (the amount companies can invest tax free) remains at £1m indefinitely.

New and start-up companies will be able to raise up to £250,000 under the scheme, giving tax relief to investors.

The share options for employees have doubled from £30,000 to £60,000.

Stamp Duty – still happening 

From today (23^rd September 2023) there will be a cut to Stamp Duty, which is paid when people buy a property in England and Northern Ireland: there will be no stamp duty on the first £250,000, and for first-time buyers that figure will rise to £425,000.

Update 17/10/22: Still going ahead.

Energy – amended (17/10/22)

There will be a freeze on energy bills, which the Government claims will reduce inflation by 5 percentage points.

Update 17/10/22 11am:

This will remain until April 2023, at which point The Government will discuss how we can be supported. 

Shopping – scrapped (17/10/22)

The UK will introduce tax-free shopping for overseas visitors.

The planned increases in the duties on beer, cider, wine and spirits has been cancelled.

Update 17/10/22 11am:

The above has now been scrapped.

For more information, head to the BBC website