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Autumn Budget in a nutshell
Oct 29, 2021
Autumn Budget 2021
The greatly anticipated Autumn budget was bought to the table by Chancellor Rishi Sunak on Wednesday but how might it affect you, your business and your family? Read on for our brief guide to the main points raised in the Autumn 2021 Budget:
• Inflation will rise to approximately 4% in 2022 which is up by 0.9%
• Universal Credit taper rate cut from 63p to 55p, plus a £500 increase in the Work Allowance – to be put in place by 1st December 2021
• A reminder that National Insurance Contributions (NI) will increase by 1.25% from 6th April 2022 - this is to fund the NHS and social care
• National Living Wage set to increase next April to £9.50 an hour for those aged 23 and over (see table below for other rates)
• The fuel duty freeze remains
• A pay rise for public sector staff in April 2022
• The recovery loan scheme has been extended to June 2022
• 0% Savings rate band to remain at £5,000
• Adult and junior ISA limits to remain the same at £20,000 and £9,000
• Tax bands to remain frozen at April 2021 levels for 5 years
• Business rates multiplier has been frozen at 49.9p and 51.2p from 1st April 2022 until March 2023
• Personal tax threshold limits frozen until 2026
• 25% Corporation Tax rise from April 2023
• A 50% business rate discount for businesses in the retail, hospitality and leisure industries with a cap at £110,000
• Introduction of a 100% business rates relief for 12 months for firms to carry out improvements to premises from 1st April 2023
• Capital gains tax deadline for reporting and paying capital gains tax will increase from 30 to 60 days following completion
• A massive Alcohol costs shake up where higher strength drinks to have higher duties but lower strength drinks to be cheaper. The cost of a pint will also be cut by 3p
• Smoking costs to increase on both cigarettes and hand-rolling tobacco
• A levy on property developers of high-rise flats to pay for removal of dangerous cladding has been granted
• Libraries to be revamped and put back into action with new levelling up funds
• Extra funding will be provided for projects to support new parents
• A new programme called Multiply will be introduced to improve numeracy skills in adults
• Funding for school pupils will be put back to previous levels seen in 2010
• Internal domestic flights will have air passenger duty cut making it cheaper to fly within the UK
• Income tax applicable to dividends to increase by 1.25% from 6th April 2022
• Penalties for late submission and late payment of tax for Income Tax Self-Assessment come into effect from 6th April 2024 for those required to submit through MTD (all other taxpayers will be 6th April 2025)
• Residential Property Developers Tax (RPDT) will be charged at 4% on profit in excess of £25 mil
Starting in early 2025, Companies House will begin rolling out new identity verification requirements for company directors and persons with significant control (PSCs). This means that, in the future, before filing information on the Companies House register, directors will need to prove their identity. This change is designed to reduce fraud and improve transparency. The reforms are part of the Economic Crime and Corporate Transparency Act 2023, which aims to combat fraudulent activity. As part of these reforms, accountancy firms and solicitors registered for anti-money laundering (AML) supervision will be among the first required to comply, starting in early 2025. By spring 2025, accountants and other professional service providers, who are registered for AML supervision, will be able to become authorised corporate service providers (ACSPs). This means they’ll be able to help clients verify their identities and pass that information on to Companies House. By autumn 2025, these new ID verification requirements will be mandatory for new directors and PSCs when setting up a company or making new appointments. If your business already exists, you will have a 12-month transition period until autumn 2026 to ensure your directors and PSCs comply with these requirements when your next confirmation statement is due. This is a significant change, therefore it’s important to stay ahead of these requirements to avoid any disruptions to your business.
Tips to ensure your bookkeeping stays on track during the holiday period.
All the important tax deadline filing dates
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Starting in early 2025, Companies House will begin rolling out new identity verification requirements for company directors and persons with significant control (PSCs). This means that, in the future, before filing information on the Companies House register, directors will need to prove their identity. This change is designed to reduce fraud and improve transparency. The reforms are part of the Economic Crime and Corporate Transparency Act 2023, which aims to combat fraudulent activity. As part of these reforms, accountancy firms and solicitors registered for anti-money laundering (AML) supervision will be among the first required to comply, starting in early 2025. By spring 2025, accountants and other professional service providers, who are registered for AML supervision, will be able to become authorised corporate service providers (ACSPs). This means they’ll be able to help clients verify their identities and pass that information on to Companies House. By autumn 2025, these new ID verification requirements will be mandatory for new directors and PSCs when setting up a company or making new appointments. If your business already exists, you will have a 12-month transition period until autumn 2026 to ensure your directors and PSCs comply with these requirements when your next confirmation statement is due. This is a significant change, therefore it’s important to stay ahead of these requirements to avoid any disruptions to your business.
Tips to ensure your bookkeeping stays on track during the holiday period.
All the important tax deadline filing dates