Kwasi Kwarteng and Liz Truss have been in their respective roles for less than a month and already it feels like Covid times from a tax perspective after viewing the Mini Budget 2022 update.
When Covid hit, we were doing our best to provide as regular updates as possible in terms of what Covid-related support was available. The problem being that the government would issue support and guidance one day and then a few days later, completely change it . . . sound familiar?
As you may be aware, the government have changed their mind and reinstated the additional rate band of 45% on income and savings and 38.1% on dividends in the Mini Budget 2022 update. However, it’s not all bad as the NI rate change is still in place, so our advice of limiting funds withdrawn from any limited company or bringing forward any plans to purchase assets for a sole trader or partnership, are still both valid. It just means that the benefit of doing so is very marginal, only saving 1.25% tax in either instance.
If you require any further clarification on this point, or the others raised in our previous communication, please feel free to contact us.
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