Spring Budget 2023
16.03.2023
The Back to Work Budget
With the cost of living crisis still very much impacting upon many people here in the UK, Jeremy Hunt yesterday rolled out his Spring Budget.
For Individuals
There is no change from what was announced in the 2022 Autumn Statement as regards the 2023/24 tax free personal allowances (£12,570) or the tax rate bands as it applies to taxpayers in England, Northern Ireland and Wales. (optional The Scottish Parliament has set different tax rate bands for 2023/24 in respect of non-savings and non-dividend income.)
The Chancellor has scrapped the life time pension allowance threshold altogether and increased the annual amount you can potentially put into a pension scheme up to a maximum of £60,000. The aim behind all of this is, in part, to encourage those people who have retired early and are drawing on their pension to come back into work, as well as to motivate those contemplating early retirement to stay longer.
For those families who are on Universal Credit the maximum childcare cap will increase to £951 for a single child and £1,683 for two.
Parents of one and two year old children will get 30 hours of free childcare a week. However this will be phased in, starting from April 2024. It is expected that from September 2025 every single working parent will have access to this free childcare.
Those people claiming disability benefits may be able to continue to receive those benefits after returning to work.
For Business
The corporation tax rates, ranging between 19% and 25%, which were announced in the 2022 Autumn Statement, will still come in from 1st April 2023.
The Government will be rolling out 12 high growth investment zones. Eight have already been hallmarked for England and there will at least one each for Wales, Scotland and Northern Ireland. They will be clustered around universities or research institutions and will aid sectors such as technology, artificial intelligence and the creative sector. These sites will offer tax, national insurance, capital allowances and business rates incentives.
For companies there will be a 100% first year allowance tax relief on expenditure incurred in respect purchasing certain types of plant and machinery irrespective of the amount involved.
There are lots of opportunities and issues to consider following this Budget for businesses, individuals and families. We are here ready to help. We believe it’s important to discuss all plans you are considering before taking any action and so if you would like to see how the 2023 Budget changes might affect you, your family and your business, why not contact Ifan Lloyd on illoyd@idhaccountancy.com or 020 3411 4401 who will arrange for us to have that conversation.