Today the new Chancellor, Jeremy Hunt MP, has given a statement which undoes pretty much all of the tax measures outlined in Kwasi Kwarteng’s mini-budget delivered just 3 weeks ago. The following tax policies will no longer take place:
- Cutting the basic rate of income tax to 19% from April 2023;
- Cutting dividends tax by 1.25 percentage points from April 2023;
- Repealing the 2017 and 2021 off-payroll reforms;
- Introducing a new VAT-free shopping scheme for non-UK visitors to Great Britain;
- Freezing alcohol duty rates from 1 February 2023 for a year.
However, the reversal of the National Insurance increase and the Health and Social Care Levy, and the cuts to Stamp Duty Land Tax will proceed as planned.
The mini-Budget has been ripped apart and yet again, it will be the self-employed who pay the price. Crippling indecision from this government has left millions of independent workers in limbo, unsure of whether they can pay rent, their mortgages and heating bills.
Rowing back on off-payroll repeal deals a major blow to freelancers and contractors, and the businesses that engage them. Given that off-payroll legislation makes working self-employed more difficult, it also contradicts the government’s latest plan to help those on benefits and at college start their own business.
With yet another fiscal statement scheduled for 31st October, when will it end? What we all desperately need – businesses, workers and even MPs – is stability, clarity and a robust plan of action so we can all get on with things.