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You could be forgiven for ignoring the news at the moment – things are changing so frequently it’s proving challenging to make solid plans for anything.
We take a look at what we thought was happening, which Jeremy Hunt told us on 17 October isn’t going ahead after all. Although not all of these are directly employment related, they ultimately impact the cost of living for individuals, and the cost of running a business.
Energy Bills | |
Old Plans | New Plans |
The Energy Price Guarantee would have placed a limit on what energy suppliers can charge for two years. | It’s reduced to a 6 month guarantee, to cover winter. Hunt said that on review, the government will look at an approach that helps those most in need. |
Income Tax | |
We were initially assured of an income tax cut of 1p in the pound to be implemented in 2024. This was then brought forward to April 2023. There was also talk of getting rid of the 45% additional rate of tax, although that idea was scrapped before Hunt even got to it.
Tax on dividends was increased in April 2022, and intended to be reduced in April 2023.
| There will be no cut, so income tax will remain at 20% in England and Wales.
There will be no reversal of the increased tax on dividends. |
Sin taxes | |
Planned increases on duty for beer, wine, spirits and cider were cancelled, having stayed the same since 2013. | The cancellation has been cancelled. Bad news for those who like a tipple, but prices will go up from February 2023.
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IR35 | |
IR35 legislation, which requires employers in the public and private sectors to conduct an assessment on contractors and pay them via PAYE if their status is deemed employment, was due to be scrapped in April 2023.
| This now isn’t going ahead, the IR35 rules are here to stay. That period of excitement for many businesses was very short lived. |
But it isn’t all bad news – the 1.25% reversal of National Insurance rates will go ahead, from 6 November. The Treasury estimates that this will save people an average of £330 per year. Not sure that quite balances out the non-changes above, but at least they left us with something!
