Key points for small businesses from government’s not-so-mini budget

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Chancellor Kwasi Kwarteng delivered his mini budget to parliament this morning, promising to help businesses with soaring energy prices, tax bills and disruption caused by strike action. The new measures include £50 billion worth of tax cuts such as freezing corporation tax.  

Here are the main points affecting small businesses and independent retailers:

  • The government will introduce VAT-free shopping for overseas visitors.
  • The planned rise to corporation tax has been axed and will remain at 19 per cent. “The UK’s corporate tax rate will not rise to 25 per cent – it will remain at 19 per cent. We will have the lowest rate of corporation tax in the G20,” said Kwarteng. He also added that companies will be able to use this to “reinvest, create jobs, raise wages, or pay dividends which support our pensions.”
  • The basic rate of income tax will be cut from April 2023 from 20 per cent to 19 per cent.
  • The national insurance rise introduced earlier this year will be cancelled from 6 November.
  • The government is abolishing the higher tax rate for those earning over £150,000 a year.
  • Business rates were not addressed, apart from “there will be no business rates to pay on newly occupied business premises.”
  • Legislation will be put in place to tackle “militant trade unions” from closing down key infrastructure through strikes. The laws will require unions to put pay offers to a member vote, ensuring “strikes can only be called once pay talks have genuinely broken down.”