Budget announcement directly affecting Recruitment industry
In Wednesdays announcement Chancellor Kwasi Kwarteng made commitments to cut back unnecessary and excessive regulation as part of their growth plan.
This included :
simplifying tax,
Abolishing the Office of Tax Simplification
Improving the UK financial environment for investors, businesses and others.which were at the heart of The Growth Plan revealed by Kwarteng.
“Economic growth is the government’s central mission,” the Growth Plan document says. “To do this, the government must cut taxes, streamline the public sector and liberate the private sector by making Britain the place for investment, skilled employment, infrastructure, home ownership and enterprise.”
The changes to the fiercely debated IR35 regulations outlined in the Growth Plan say the Plan “sets out first steps in taking complexity out of the tax system. The 2017 and 2021 reforms to the off-payroll working rules… will be repealed from 6 April 2023. From this date, workers providing their services via an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of tax and [National Insurance Contributions]”.
Other highlights with potential impact for recruiters include:
- Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely
- Regulations change so pension funds can increase UK investments
- New and start-up companies able to raise up to £250k under a scheme giving tax relief to investors
- Share options for employees doubled from £30k to £60k.
