Autumn Statement 2022
Chancellor Jeremy Hunt, delivered the Autumn Statement
Today (17th November) the Chancellor Jeremy Hunt, delivered the Autumn Statement, some of the key updates and changes for businesses are shown below.
For full details about the statement click here
- Before the end of this year, the Government will bring forward a new energy support approach to support businesses from next April, the current energy support schemes will run until April.
Employment and Skills
- The minimum pay rate for those aged 23 and above will rise to £10.42 in April.
- The National Insurance Secondary Threshold is maintained at £9,100 until April 2028.
- Will be introducing the Lifelong Loan Entitlement from 2025 to provide more flexible finance for adults to study throughout their lives.
- At least £1.7bn will be awarded in the second round of Levelling Up Fund awards.
- Maintaining the government’s commitments to deliver major infrastructure projects, including HS2 and Northern Powerhouse rail.
R&D and Innovation
- Changes to R&D: Cutting the deduction rate for the SME scheme to 86% and the credit rate to 10% but increasing the rate of the separate R&D expenditure credit from 13% to 20%.
- Sectors which have the most potential for growth - such as digital, green technology and life sciences - will be supported through measures to reduce unnecessary regulation and boost innovation and growth.
- The Annual Investment Allowance (AIA) is set at permanent level of £1 million from 1 April 2023.
Tax, Reliefs and Business Rates
- The dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.
- The annual allowance before capital gains tax is paid will be reduced from £12,300 to £6,000 in April and then to £3,000 a year later.
- The VAT registration threshold is maintained at £85,000 for two years from April 2024.
- Package of support on business rates: The business rates multipliers will be frozen in 2023-24, and upward transitional relief caps will provide support to ratepayers facing large bill increases following the revaluation. The relief for retail, hospitality and leisure sectors will be extended and increased, and there will be additional support provided for small businesses.
- Removal of import tariffs on over 100 goods used by UK businesses.
- Electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025.
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