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The Autumn Budget – what tradespeople should know

clock 9 months ago
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With busy weeks grafting and winter approaching, you can be forgiven for not having paid attention to the Autumn Budget.

Chancellor Rishi Sunak announced the government’s tax and spending plans for the year ahead, as he planned for the “post-Covid” era.

So, what do tradespeople need to know about the Autumn Budget?

1. Rise in fuel duty frozen until 2023

With the dubbed ‘Panic at the Pumps’ and prices hitting a record high, fuel duty being frozen will come as welcome news to many.

The government reports that van drivers will save around £30 per tank compared to pre-2010 plans.

2. The living wage is rising

The National Living Wage is set to increase next year by 6.6%, to £9.50 an hour for those aged 23 and over.

For people aged 21-22 it will also go up, rising from £8.36 to £9.18 an hour, and the apprentice rate will increase from £4.30 to £4.81 an hour.

Changes will come into play from April next year.

3. National insurance rates are increasing

Whilst income tax has been frozen, taxpayers will see rises in National Insurance.

The treasury confirmed that NI rates will rise by 1.25 percentage points from April 2022.

Self-employed pay Class 4 NI on profits between £9,568 to £50,270 will increase to 10.25 per cent.

However, NI income thresholds are reportedly rising in line with inflation, which means you may keep more money than you might think.

4. Plans to create the skills revolution

Sunak announced an extension to the £3000 apprenticeship incentive scheme until the end of January 2022 as part of a plan for jobs in response to the labour shortages that are impacting the construction industry.

There are extensions to the kickstart scheme, as well as £1.6 billion that will be used to fund over 100,000 technical T-Level qualifications for young people.

5. Support for small businesses

A £150 million pot to support small businesses outside of the South East has been announced.

The British Business Bank wants to encourage regional investment away from London and the South East, as part of wider government efforts to ‘level up’ parts of the country.

Over 200 small businesses have been given a boost as part of the government’s Regional Angel Programme since 2019.

BONUS – alcohol price changes

Booze will be taxed in proportion to alcohol content, so the stronger the drink the higher the rates.

This means stronger drinks will be slightly more expensive; low alcohol drinks like beer and cider will get slightly cheaper.

Furthermore, a permanent cut will be made in the cost of a pint by 3 pence. Think of that what you will.

 

For more information about the autumn budget, visit Gov UK.

How have you been affected by the budget? Let us know.

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