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Budget

The autumn budget: Here's what it means for you

Rishi Sunak announced plans for the financial year 2022-2023 in his autumn budget statement on 27th October. He promised to deliver a stronger economy for everyone, but what does it mean for you? In this post, we present a quick-fire autumn budget summary, showing you precisely what’s changed, and how it is likely to affect you financially. Contrary to expectations, we did not see a raid on inheritance tax or any changes to capital gains, as recommended by various advisory bodies. Instead, it appears that ordinary working people will shoulder most of the tax burden associated with the COVID-19 pandemic over the following years.

National Insurance will rise

The government confirmed a 1.25 percent increase in National Insurance from April 2022 during the autumn budget statement, confirming previous announcements by government ministers over the summer. National insurance thresholds will rise with inflation, meaning that workers will be allowed to earn more before attracting the tax. In 2021-2022, the Class 1 tax rate on earnings above £9,568 but below £50,270 was 12 percent. However, in 2022-2023 that will rise to 13.25 percent, but only on earnings between £9,880 and £50,270.

No new fuel duty

Motorists had feared that Sunak would introduce yet more increases in fuel duty, either in line with, or above, inflation. However, that threat failed to materialise. In his address, Sunak said that the proposed fuel duty increase would be cancelled, saving drivers an estimated £8 billion over the next five years.

Business rate discount for retail and hospitality

Given the effects of COVID-19 restrictions and government-backed social distancing measures, Sunak announced a 50 percent business rate discount for firms in the retail and hospitality sector. The new benefits will apply up to a cap of £110,000, designed to help small companies get back on their feet.

Increase in living wage

Sunak also took action on the living wage. The current living wage is £8.91 per hour. From April 2022, it will rise to £9.50 per hour.

Increase in the work allowance

The work allowance will increase by £500. Those on Universal Credit will be able to earn £500 more per year before credit starts to be affected.

Introduction of “Draught Relief”

The new “Draught Relief” scheme will cut the duty on beer and cider sold in pubs. According to the government, it is the largest reduction in tariffs on alcoholic beverages since the 1920s. The tax means that the price of a pint will fall, on average, by 3 pence. The measures will also include some additional reliefs for cider makers and some small brewers. The reforms, the chancellor says, are possible because of the UK’s decision to leave the EU.

Taxes will go down overall

Despite the vast increase in debt created by the furlough scheme and lacklustre 2020 tax receipts, Sunak promised that the overall tax burden would go down by the end of the parliament. In summary, the tax raid that many expected didn’t materialise in the autumn budget statement. National Insurance increased for working people, but the budget was primarily pro-business - an attempt to undo some of the damage inflicted on the leisure and hospitality sectors in 2020 as a result of the pandemic.

Affordable Pay-monthly Packages

We offer a full range of services to limited companies, solo trader, partnership, charity, LLP, CIC as well as individuals. We have arranged our services into easy to choose packages that suit your needs.

Start-up
£ 50  / Month (+VAT)

This price plan is suitable for the start-up companies who are not VAT registered.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Payroll & RTI submission for 1 employee
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Assisting with correspondence from HMRC and Companies House
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 80K
Limited Company
£ 100  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered and turnover is less than 100K with a couple of employees.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 2 employees
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • MTD VAT returns submissions – quarterly
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 100K
Company Pro
£ 150  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered; turnovers are more than 100K and have 2 directors and shareholders.

  • Company formation (if required)
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 5 employees (Free)
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Unlimited face to face advice and email support
  • 2 Directors
  • 2 Shareholders
  • Annual turnover should be less than 200K
Company Premium
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This bespoke price plan is suitable for the companies who are VAT registered, with more directors, shareholders and employees. Also, annual turnover is more than 200k and requires further bespoke services.

  • Company formation
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission all employees
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for the all Directors (Free)*
  • Unlimited face to face advice and email support
  • Flexible and can be discussed
  • Annual turnover should be more than 200K

Add on Services

  1. Personal Tax Returns

    This price plan is suitable for self-employed individuals, landlords and those who need to submit Self-Assessment Tax Returns.

    If you need to submit the Self-Assessment Tax Return, we can offer you competitive prices starting from £150 + VAT. Price can vary according to your nature of income. Please contact us for more details.

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Taxcare Accountancy was formed to provide Small & Medium Businesses with an affordable, proactive and professional accountancy services…