What does the Mini Budget mean for you?

There’s no escaping the mini budget! Dominating new headlines, everyone has waited anxiously to find out how it will affect them, as the cost of living crisis continues to push households and businesses to the limit financially.

And on Friday September 23, the Chancellor of the Exchequer, Kwasi Kwarteng passed a ‘mini-budget’ whilst stating that: ““We’re at the beginning of a new era.”

 

But what are the terms of the mini budget?

The  ‘mini budget’ details a number of economic policies including:

 

• The basic rate of income tax is set to be cut from 20% to 19% from April 2023. This measure was originally unveiled by Kwarteng’s predecessor, Rishi Sunak, earlier this year, but wasn’t due to take affect until 2024.
• The additional rate of income tax, currently 45%, is being scrapped and will be applied to annual earnings which exceed £150,000.
• From November 6, employers and employees will pay 1.25 percentage points less in NI, providing a small boost to profits and pay packets.
• The threshold where no stamp duty is payable is rising from £125,000 to £250,000. This means that buyers can save up to £2,500.
• The current rate of 19% was set to rise to 25% on business profits exceeding £250,000 from the 1^st April 2023 however, the mini budget outlines that the flat rate of 19% will remain and be applied to business profits of all sizes.

The Chancellor of the Exchequer, Kwasi Kwarteng has been quoted in the media stating: “Economic growth isn’t some academic term with no connection to the real world. It means more jobs, higher pay and more money to fund public services, like schools and the NHS.

This will not happen overnight but the tax cuts and reforms I’ve announced today – the biggest package in generations – send a clear signal that growth is our priority.

“Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And we’re accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.

“We want businesses to invest in the UK, we want the brightest and the best to work here and we want better living standards for everyone.”

 

Why choose React Accountancy?

 

Here at React Accountancy, we provide trusted accountancy services to start-up, established and multi-national businesses across a diverse range of industries.

From the moment you get in touch, our approachable, friendly and professional team will go above and beyond to ensure that you receive the right advice, support and accountancy solutions for your business.

All of our team has years of experience in providing accountancy services that support your business including complex financial issues.

Get in touch today for further information about any of our services.

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