What is Going to change after the Announcement of the autumn Budget

The Chancellor of the Exchequer, Rishi Sunak, announced the Autumn Budget of the United Kingdom on 27th October 2021. The budget commenced with a few changes, while some are left for further decisions.

While experts are studying and analyzing the budget to its core, we present you with a summary of all significant changes that are likely to influence or affect your small business.

Corporate tax

For now, the corporate tax is going to remain reduced to 12.5%. But, relating to this, the tax rate will most likely increase in 2023. The hike in the tax rate would conclude with a payable rate of 25% in 2023. But, it would comply with companies making more than 250000 Euros. But, the figures need to remain in memories for all future SMEs.

Business tax

Everyone was expecting the government to take a decision on business rate reforms looking at the current scenario while receding the Autumn Budget.

The Autumn budget announcement clarifies that the business tax wouldn’t be abolished but very notably made fairer than what is existing. And, this concludes that from 2023, the tax rates would be revalued every third year or on a more frequent basis than the persisting system.

In order to make companies adopt green technology, a green investment relief will be introduced.

According to a new business rate improvement relief, businesses will be able to create properties without paying any extra business rate for 12 months.
All these relief plans will be implemented from 2023.

National Living Wage

The National Wage will become 9.50 Euros per hour from next year. Although it did not come as a huge surprise, it would be welcoming for lower-income employees, especially those catering to the retail and hospitality sectors required to budget considering the increase.

From an overall interpretation of the budget, it wouldn’t be wrong to conclude that small business owners do not have a lot to benefit from all of it. The support offered is quite limited to the outcomes of increasing National Insurance and the National Living Wage. All of this would definitely affect the SMEs. The National Insurance has become 15.05% from 13.8% with a substantial rise of 1.25% percent increase.

There was no direct or significant mention of business employment allowance at all. That means it will stay at 4000 Euros instead of any spike along with increasing National Insurance.

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