The recent Spring Budget announced a range of measures that will impact your business and your employees.

To help we have outlined the upcoming changes and what these mean for you.

Support with the Corporation Tax hike  

The main rate of Corporation Tax is still set to increase to 25 per cent on 1 April 2023.

However, the Chancellor announced a new capital allowance scheme to help businesses adjust to the tax hike.

This “Full Expensing” scheme is in replacement of the Super Deduction in a bid to encourage investment and growth. So, if you purchase any qualifying plant and machinery, you will be able to write off the full cost in the year that you invest.

At the moment, this scheme is set to apply for three years but this could become a permanent measure in the future.

Further reforms to R&D support

With ongoing changes to the research and development tax reliefs you can get, there’s no wonder that some businesses miss out.

Reforms to the R&D tax relief were already set to come into force on 1 April 2023, but the Budget announced further changes that you need to be aware of.

If you run an R&D-intensive small and medium sized enterprise (SME), you could be entitled to more support in the form of an increase in tax relief.

This will apply if your business is loss-making and, if you are entitled, HM Revenue & Customs (HMRC) will give you £27 for every £100 of R&D investment.

Extensions for some of the planned reforms were also announced. If you make a claim on or after 1 August 2023, you will need to provide additional information. This was originally set to come into force on 1 April 2023.

The planned restriction on overseas expenditure has also been pushed back by a year, to 1 April 2024.

An effort to fill vacancies

If you are struggling to recruit, you should know that you aren’t alone.

There are currently one million job vacancies across the UK and the Chancellor outlined measures to encourage those that are unemployed into jobs.

As part of this effort, apprenticeships for people over the age of 50 are to be introduced as well as more occupational health support for those in work.

Employees with children will also benefit from a reduction in childcare costs and wrap-around care within schools to allow for longer working hours.

Don’t delay

Some of these changes, such as the Corporation Tax increase, are just around the corner. So, you need to review your business’ finances and business plan to make sure your business can adapt.

If you require support with adjusting to the changes from the Spring Budget, please get in touch with your Seymour Taylor representative or contact us on 01494 552100.

This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at time of publishing on 23 March 2023.



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