Earlier today (15th March 2023) the Chancellor of the Exchequer Jeremy Hunt delivered his first budget.
However, he was presenting his second set piece following the Autumn Statement last year amid big expectations. So, here’s the brief overview of the main parts following today’s announcements and how it can affect your business and your personally
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Lifetime Pensions Allowance
After years of reducing the lifetime allowance this has been a complete reversal of previous policy. The Chancellor is going to abolish the £1.073 limit altogether.
The removal of the life time allowance means there is no upper cap on how much you save in your pension pot before paying tax.
The main reason for this move is to make sure the high earning doctors in the NHS are not subject to this tax and hopefully convince them to work more hours and perhaps not consider early retirement.
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Yearly Allowance for pension contributions
From April 2023 the pension annual allowance will increase from £40,000 to £60,000.
This is great news for high earners and for those who want to save more into the pension schemes without being penalised with a tax charge.
It is obvious that the government wants to encourage us all when it comes to saving for our futures
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Corporation Tax
Corporation tax on profits over £250K will rise from 19% to 25% from April.
The rate for smaller companies with profits up to £50K will continue to be 19%. If your profits are between these two limits then you would pay what we call the “marginal rate”.
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Full Expensing
Super deduction whereby the any expense on capital expenditure qualified for relief at 130% will come to an end this month.
From 1st April 2023 until end of March 2026 companies will be able to claim 100% capital allowance on plant and machinery including IT investments.
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Investment Zones
Twelve Investment zones (potential Canary Wharfs) will be created with at least one in Scotland, Wales and Northern Ireland. These investment zones will be eligible for £80m funding.
What Next
There is more including on Research & Development, help with Childcare which may help with your staff shortage and other measures to entice the over 50’s back into work. We will be sending you our more in-depth look at the budget later this week.
In the meantime, if you have any questions about today’s announcements and how it affects you, please get in touch. Contact your manager at Myers Clark for further information.
If you are not yet working with us but would like to you can start here.