Mini Budget: How it affects SME’s

In his first fiscal statement in his recently appointed role as Chancellor of the Exchequer, Kwasi Kwarteng has made a series of unusually radical announcements to try and stimulate growth in the UK economy. Owners of SME businesses will be particularly interested in the following business tax changes:

• The planned corporation tax rise in April 2023, from 19% to 25%, is now scrapped.
• The recent 1.25% rise in employers NIC will be reversed wef 6 November 2022.
• The annual investment allowance (giving capital allowances tax relief on capital purchases) will not be reduced in March 2023 from £1m pa to £200k pa, as previously planned.
• Off payroll working rules (IR35) repealed from April 2023. Personal service companies, will once again be responsible for determining their employment status and paying the appropriate amount of tax and NICs.
• Tax advantaged investment schemes (SEIS and CSOP) made more generous from beyond 2023.

Business owners are expected to be surprisingly pleased at these changes –  ‘abolished’ seems to be our new Chancellor’s favourite word!

Disclaimer - All information in this post was correct at time of writing.