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Mini-budget update: U-turns and more U-turns

So as expected, further U-turns have been confirmed by the new chancellor. In his own words, ‘almost all’ of the measures originally announced have been reversed. Here is a look at what remains and what’s gone… for now.

What remains

  • Employees earning between £1,048.01 and £4,189 a month will see their NICs reduce from 13.25% to 12% from November, while earnings above £4,189 will revert to from 3.25% to 2%.

  • The temporary cap of £1m for the annual investment allowance (AIA) to be made permanent.

  • From 23 September 2022, the 0% band has been doubled to £250,000 – and £425,000 for first-time buyers.

  • The Energy Price Guarantee for households - the guarantee, which was originally due to last for two years, will now only be in place until April 2023.

What's gone

The following measures are no longer going ahead:

  • 1 percentage point cut to the basic rate of income tax, reducing the rate from 20% to 19%.

  • 1.25 percentage point decrease in dividend tax rates.

  • Reduction in Corporation Tax to 19% for all UK companies. Rate of 25% for UK companies with profits over £250,000.

  • Repealing of IR35 rules introduced in 2017 and 2021.

  • Abolition of additional income tax band of 45%

For information on how these changes affect you, call us today on 01403 907 884 or email

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