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| Capital allowances reformed in 'Budget for growth' | |
A £27 billion transformation of capital allowances from April was announced by Chancellor Jeremy Hunt as he delivered a 'Budget for growth'.
The Spring Budget followed an improved forecast from the Office for Budget Responsibility (OBR). The OBR said it expects the UK to avoid a technical recession this year, with a stronger-than-expected performance from the economy as inflation continues to fall. | | | |
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| Business groups welcome Spring Budget | |
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The UK’s business groups largely welcomed the measures taken in the Chancellor’s Spring Budget. The Confederation of British Industry (CBI) branded the Budget as a 'strong second act' in Mr Hunt's plan for stability and growth. Matthew Fell, Interim Director General of the CBI, said:
'The CBI called for action on people and productivity and the government has delivered support for both. Measures to help households and businesses will secure the growth we need to boost living standards for all. Boosting childcare provision is a big win for businesses struggling to recruit and retain, and parents balancing care and career needs.' | |
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| HMRC issues guidance on abolition of pensions lifetime allowance | |
HMRC recently issued preliminary guidance in regard to the abolition of the pensions lifetime allowance.
At the Spring Budget, Chancellor Hunt announced that the lifetime allowance charge will be removed from 6 April 2023. The allowance will be fully abolished from the 2024/25 tax year via a future Finance Bill, HMRC said. | | | |
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| Bank of England raises UK interest rates to 4.25% | |
Interest rates have been increased to 4.25% from 4% by the Bank of England (BoE) as it tries to slow rising prices.
The BoE's decision to increase rates for the 11th time in a row comes after figures showed that the cost of living has risen by more than expected. Data published recently by the Office for National Statistics (ONS) showed that inflation jumped to 10.4% in the year to February, despite predictions it would fall. | | | |
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HMRC late payment interest rate hits 6.75% | |
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HMRC has revised interest rates with late payment bills charged 6.75% from 13 April, the highest level since January 2008.
The late payment and repayment interest rates follow the rise in the Bank of England base rate to 4.25% on 23 March and are applied to the main taxes and duties that HMRC currently charges and pays interest. The rates will rise to:
• Late payment interest rate — 6.75% from 13 April 2023 • Repayment interest rate — 3.25% from 13 April 2023 | |
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| Taxpayers given more time for voluntary national insurance contributions | |
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The government has extended the voluntary national insurance deadline to give taxpayers more time to fill gaps in their contributions and boost their state pensions. The extension comes after members of the public voiced concerns over the previous deadline of 5 April 2023.
As part of transitional arrangements to the new state pension, taxpayers have been able to make voluntary contributions to any incomplete years in their national insurance record between April 2006 and April 2016.
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| Small businesses at risk as energy costs rise | |
The end of the Energy Bill Relief Scheme (EBRS) on 1 April could threaten the future of hundreds of thousands of small firms, according to research by the Federation of Small Businesses (FSB).
The Energy Bill Discount Scheme (EBDS) offers a far lower level of support for small businesses. | | | |
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Supported living accommodation. VAT changes | |
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The UK government is to introduce statutory regulation of the providers of supported living accommodation for young people in 2023. These services are often referred to as “independent supported living” or ISL. Supported living is the provision of accommodation with additional services of care and support for 16-17 year olds. Providers will need to register with OFSTED, who will undertake inspections every 3 years. A number of quality standards for the accommodation and the support have been created. | |
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UK joins the CPTPP free trade block | |
The UK announced that it has joined the Comprehensive and Progressive agreement for Trans Pacific Partnership (CPTPP). The precise entry date for the UK has yet to be agreed. The CPTPP is a free trade agreement with 11 other countries (Australia, New Zealand, Canada, Japan, Mexico, Singapore, Vietnam, Peru, Malaysia, Chile and Brunei). Goods moving between members, which originate in those countries, have a reduced, preferential rate of customs duty, which is often but not always nil. CPTPP commenced in late 2018. | | | |
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James Cowper Kreston is a leading firm of accountants and business advisers, with offices across the South of England. We deliver focused, innovative advice to a diverse range of businesses and individuals helping our clients to maximise their potential. If you would like to discuss any of the topics raised within this newsletter please email us on info@jamescowperkreston.co.uk or call us on 01635 35255. James Cowper Kreston | |
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The information in this newsletter must not be relied on as giving sufficient advice in any specific case.
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