A big ‘Mini-Budget’ – what are the implications?
As of 17/10/22, Chancellor Jeremy Hunt has announced new budget plans. To view our latest budget information, click here.
A new Chancellor and a new approach to Budget Statements has set a new tone for a government that intends to govern.
Whether you agree or not with the politics of the Government, it cannot be denied that in a little over 30 minutes the new Chancellor of the Exchequer, Kwasi Kwarteng, has reshaped the approach to Budget announcements. A whirlwind of over 25 measures were announced, leaving many wondering what he might have held back for his main Budget announcement expected later this Autumn.
The Chancellor stated he wants to achieve a simpler tax system, marked by embedding the Office for Tax Simplification into HMRC and the Treasury. Yet many of today’s measures will achieve exactly the opposite. The reversal of previous changes to IR35 and the timing of changes to National Insurance will complicate things for many entrepreneurs and business owners.
However, with businesses and individuals facing tough economic challenges and a cost-of-living crisis there is, at first glance, from a personal and business perspective, much to cheer. The support on soaring energy costs will be welcomed by households and businesses, despite its high cost. There are, as always, announcements that will cause concern, and many will have been left wondering how the increased spending and tax cuts that were announced can be afforded.
Perhaps missing from today’s ‘Budget’ was any significant announcement on VAT. Whilst retailers will undoubtedly welcome a simpler way for tourists to shop ‘tax free’, many would have hoped to see VAT cut on, for example, fuel to ease the travel and transportation costs.
Read our summary of the top implications for businesses and individuals below.
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