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U-turn from Chancellor Jeremy Hunt – What it Means For You

17 October 2022

Who likes to party and join in with the Hokey Cokey?

With today’s U-turn from Chancellor Jeremy Hunt, it would seem like it’s the Government’s favourite Covid lockdown dance!

By dismantling policies from the mini-budget of just a few weeks ago, Chancellor Jeremy Hunt has rewritten the prospects for your finances again!

Here’s a brief, but important, recap of the key points Jeremy Hunt made in his televised address:

What stays:

  • The planned cuts to stamp duty and National Insurance remain in place; the 1.25% rise in National Insurance will be cancelled on 6 November 2022
  • Corporation Tax will increase from 19% to 25% from April 2023, with lower and marginal rates for taxable profits under £250,000
  • The basic rate of income tax will remain at 20% and not be cut to 19%

What goes:

  • Energy price guarantee will no longer last two years – but for 6 months until April 2023 and then be reviewed
  • Dividend tax cut will be abolished so the 8.75% basic rate, 33.75% higher rate and the 39.35% additional rates remain in place
  • Plans to repeal reforms to off-payroll working rules – also known as IR35 rules – will cease

What next:

  • Hunt vowed there would be more difficult decisions on tax and spending, and that there would have to be cuts.

If you’re worried about finance, considering extra finance, or are looking at ways to increase cash in your business, join our LinkedIn Live tomorrow, Tuesday Oct 18, 2022 at 10:30am by clicking here.

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Graham Potts

FCA CTA BSc

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