On Friday, the government is expected to release a “mini-budget” in an attempt to alleviate the deteriorating economic crisis in the UK. Chancellor Kwasi Kwarteng’s announcement is expected to include new tax cuts and other economic recovery measures.
This emergency mini-budget comes at a time like now when the UK is struggling with rising prices, resulting in a cost-of-living crisis and may soon even enter a recession.
Points addressed could possibly include;
Putting a stop to the proposed rise in corporation tax
When then-Chancellor Rishi Sunak announced his plan to increase corporation tax from 19% to 25% in the recent spring budget, it meant that businesses would have to pay more tax on their earnings. On the contrary, Prime Minister Liz Truss has pledged to cancel the rise.
Cutting National Insurance
This past April, the government increased the amount of National Insurance paid by 1.25 pence per pound for both employees and businesses.
On the other hand, Truss has promised to roll back this increase, which would disproportionately favour higher-income individuals since they contribute more to National Insurance.
Also, Rishi Sunak’s previously hinted-at 1% cut in the income tax rate has been the subject of increased discussion concerning its potential early rollout.
In new “investment zones,” often known as “full fat freeports,” Chancellor Kwasi Kwarteng is reportedly considering ways to reduce company taxation to increase economic growth by establishing low-tax zones around the UK.
A low tax rate, less planning constraints, and site-specific regulations are only some of the advantages that would apply to these areas under the proposed plans.
A cut to stamp duty tax
As part of the aim to promote economic growth, bold proposals to reduce stamp duty are reportedly in the works.
Liz Truss thinks that reducing stamp duty would boost the economy since it will make it easier for first-time homebuyers to enter the market.
With many business owners looking to tomorrow’s mini-budget for more measures to help SMEs cope with the cost-of-living crisis, we will be publishing a detailed round-up of the announcement to make sure you know everything you need to.
BK Plus are here to support you and your business, so if you need advice and guidance during this time, don’t hesitate to get in touch with us today at email@example.com