Budget 2023 - My thoughts
On 15th March 2023 Jeremy Hunt, the chancellor, published his first budget. This is a bit of a curate's egg, good in parts.
The good bits: Energy bill help has been extended for another 3 months, so the average bill should stay at about £2500 per year.
Childcare costs will be discounted for some parents, a staged introduction - 15 hours of free childcare for two year olds in April 2024, in September 2024 for those over 9 months and then 30 hours for all from September 2025. (But who will be in power then?)
The £40,000 per year cap on pension contributions has been raised to £60,000 and there is now no lifetime limit on pensions savings.
Draught beer will not be rising - apparently this is a "Brexit Benefit" - he has probably looked for something he could not have done as an EU member just so they can wave this at critics as a benefit.
The bad bits: Corporation Tax on profits over £50,000 start to increase from 19% to 25% over the next £200,000. If you are an owner managed limited company it may be worth taking a larger PAYE remuneration rather than minimal salary + dividends. Speak to me about this and I will try to find the sweet spot for you.
If you smoke and drink, you will be paying more - as always.
Income tax rates are frozen until 2028 - fiscal drag will suck more and more tax payers into the higher and top rates of income tax.
In short, there is not much wriggle room for the chancellor as he needs to keep spending down and wishes to stimulate growth.