Following the much anticipated budget, we review the announcements related to business.
A discount of 50% on business rates for the retail, hospitality, and leisure sectors in England in 2022-23, up to a maximum of £110,000.
Chancellor Rishi Sunak said the government will not be abolishing business rates, however they will "make the existing system fairer"
- Frequent revaluations every three years from 2023
- Relief for those adopting solar panels
- 12-month rate holiday on property improvements.
Minimum Wage Increases
National Living Wage increases from April 2022:
- Aged 23 and over: now £8.91 an hour, will be £9.50 an hour
- Aged 21-22: now £8.36 an hour, will be £9.18 an hour
- 18 to 20-year-olds: now £6.56 an hour, will be £6.83 an hour
- Under-18s: now £4.62 an hour, will be £4.81 an hour
- Apprentice Rate: now £4.30 an hour, will be £4.81 an hour
In the last Budget, it was announced that the thresholds at which income tax is paid would be frozen at April 2021 levels for five years (although Scotland has different levels). That means pay rises will push more people into higher tax bands.
In September, the government announced employees, employers and the self-employed would all pay £1.25 more in the pound for National Insurance (NI) from April 2022 to fund social care.
- Fuel - the planned rise in fuel duty has been cancelled due to the high fuel prices, they are the highest in 8 years.
- Spirits, wine, cider and beer - planned rise on duty cancelled
- Simplification of alcohol duties: number of rates drop from 15 to 6
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