Hertfordshire / UK. (cba) Following this week’s Budget announcement by the UK Parliament (see Growth Plan 2022 on gov.uk), interested parties will find below an overview of the details – provided by the British Craft Bakers Association (CBA). The budget did not provide further details on the business energy support package announced by the government some days ago. The CBA continues to liaise with BIES (Department for Business, Energy and Industrial Strategy) to secure guaranteed long-term business support to enable member companies to continue trading. The CBA will keep its members updated as more info is released.
- National Insurance Contributions (NIC) will be reduced by 1.25 percentage points for employees, employers and the self-employed, reversing the increase introduced in April 2022 for the remainder of the year. The reduction will take effect on November 06, 2022, and will apply to Class 1 (employees and employers), Class 1A, Class 1B, and Class 4 (self-employed) NICs.
- Reduction of the basic income tax rate to 19 percent from April 2023, with the higher rate of 45 percent being abolished and replaced by a single higher rate of 40 percent. This had already been announced by the previous Chancellor of the Exchequer, but by 2024.
- The planned increase in corporate income tax to 25 percent was cancelled, and it will remain at the current rate of 19 percent.
- Reduction of taxes for companies in designated tax areas for 10 years.
- Accelerated tax relief for structures and buildings.
- 100 percent tax relief for qualified investments in plant and machinery.
- No business tax for newly occupied commercial properties.
In the coming weeks, the government will set out further details of plans to accelerate digital infrastructure, reform business regulation, increase housing supply, improve our immigration system, make childcare cheaper, boost agricultural productivity and strengthen our financial services – concludes the British Craft Bakers Association (CBA) its overview of help for the baking industry.