Spring Statment

Chancellor’s Spring Budget Statement 2023

Spring Budget, set out to meet the Government’s economic targets and to deliver against the four pillars of growth:

Enterprise, Education, Employment and Everywhere.

The Chancellor, The Rt Hon Jeremy Hunt MP, in yesterday’s Spring Budget, set out to meet the Government’s economic targets and to deliver against his four pillars of growth: Enterprise, Education, Employment and Everywhere.

The Spring Budget was delivered in the context of improved economic data, which gave the Chancellor more scope to support individuals and businesses than may have been expected.

Below is a summary of the most important announcements:-

  • With a stated objective of encouraging parents back to the workforce, 30 hours of free childcare (which already exists for eligible working parents of three and four year old children) will now also be phased in for children aged nine months up to three years in England. Upfront support for childcare costs to a maximum of £1,630 for two children will be provided to parents on Universal Credit and starting work or increasing their hours.
  • From 6 April 2023, the Annual Allowance (an annual tax-free pension contributions cap) will increase from £40,000 to £60,000; the Money Purchase Annual Allowance and the minimum Tapered Annual Allowance (TAA) will both be increased from £4,000 to £10,000, while the adjusted income threshold for the TAA will also be increased from £240,000 to £260,000; and the Lifetime Allowance charge will be removed (the Lifetime Allowance will be abolished from April 2024). The Government has said this measure is intended to keep doctors and other highly skilled people in the workforce.
  • The Energy Price Guarantee at £2,500 per annum will be extended for a further three months to the end of June 2023 and measures will be introduced to bring energy prices paid by users of pre-payment meters in line with those who pay by comparable direct debit. However, the energy rebate scheme will end.
  • Fuel duty will remain frozen and the 5p/litre temporary reduction has been extended for a further 12 months.
  • However, the freezing of income tax thresholds will mean personal tax increases from next month.
  • The scheduled corporation tax main rate increase to 25% on 1 April 2023 will go ahead, applying to businesses with profits over £250k. Marginal relief will be available to those with profits between £50k and £250k and the 19% rate will continue to apply to businesses with profits of less than £50k.
  • The 130% super-deduction for capital expenditure will not be extended but capital investment on IT and plant and machinery will be incentivised through the introduction of a full capital expensing policy for the next three years (the intention is to make this permanent). This measure is expected to cost the Treasury £9 billion per annum and increase the competitiveness of the UK capital allowances regime.
  • The Chancellor responded to calls for the planned cuts to R&D support for SMEs to be mitigated and a package of support worth £500m per annum was announced to help 20,000 R&D intensive businesses.
  • Various reforms were announced with the intention of increasing workforce participation and providing opportunity to study, retrain and upskill flexibly. In addition to the childcare measures, the reforms will focus on supporting people with disabilities, long-term sickness, carers, the longer-term unemployed and the over 50s into work.
  • The VAT exemption on healthcare will be extended from 1 May 2023 to include medical services carried out by staff directly supervised by registered pharmacists. The zero rate on prescriptions will be extended to medicines supplied through Patient Group Directions (in line with doctors’ prescriptions).
  • In an effort to increase resilience to future energy price shocks, the government is supporting investment in the energy system by launching Great British Nuclear to support new nuclear builds. Nuclear energy will be classed as environmentally sustainable.
  • Funding of £20 billion has been announced for investment in carbon capture technology over the next 20 years.
  • The government is considering new criminal offences for promoters of tax avoidance schemes who fail to comply with a legal notice from HMRC to stop promoting a scheme.

Please be assured, once again, that we are only a phone call away, and please get in touch if we can be of any assistance.

Please remember to visit our website www.fc-accountants.co.uk for regular up-dates and features.

Latest news, case studies & events

Business Guidance for Covid-19
news
SPRING BUDGET 2023

The Chancellor, The Rt Hon Jeremy Hunt MP, in yesterday’s Spring Budget, set out to meet the Government’s economic targets…

Business Guidance for Covid-19
news
AUTUMN STATEMENT 2022

We summarise below the key points announced by the Chancellor, the Rt Hon Jeremy Hunt MP, in his Autumn Statement 2022…

Business Guidance for Covid-19
news
We summarise below the key points announced by the Chancellor, Kwasi Kwarteng, in last Friday’s Growth Plan.

This came a day after the government announced that the Health and Social Care Levy (HSCL) of 1.25% due to be…

Business Guidance for Covid-19
news
SPRING STATEMENT 2022

The Chancellor’s spring Statement 2022 set out the Government’s tax plan to support the UK economy, businesses and families in…

Business Guidance for Covid-19
news
AUTUMN BUDGET 2021

Dear Client We summarise below the key points announced by the Chancellor, Rishi Sunak, in this week’s Budget:- National Insurance…

Business Guidance for Covid-19
news
Tax changes for health and social care

The government announced tax changes to fund £12 billion a year to be spent on the NHS and social care across…

What our clients say...

I have been a client of Usman’s for many years. He is very professional and reliable always responds quickly to my queries. I can highly recommend his accountancy services.

Yes this chap has helped me with my accounts and has done a fantastic job Well recommended Very pleased with the outcome

Sayeed is a highly professional accountant, his effective strategy & planning saved me from paying a hefty amount of tax which I would have paid should I had not taken his advice.

I would highly recommend F&C Accountants

I highly recommend Mr Usman Nazir as an accountant. His in-depth knowledge and experience helped me immensely and with my tax return. He quickly took the stress out of the process for me and worked through my finances promptly making me savings that I would have not been able to achieve by myself. I am very thankful now to be on his books as I know now I have his experience and input for the next time making the process so much easier.

Highly recommended, he listens to his clients! I am extremely grateful for Usman’s sound advice and support over the last six months. I see him regularly at our networking group and one day I expressed my frustration of my then accountant. Usman offered to help with no obligation or payment, so I gave him access and I quickly realised he was going to be a great asset so I switched accountants in June this year. Usman liaised with HMRC to do a review of my accounts dating back to 2017. He kept me informed at all stages and ultimately it allowed me to free up cash to reinvest in the business. I am extremely grateful and can safely say Usman always has the client’s interest at heart and makes them feel at ease even when deadlines are due. If you are frustrated with your current accountant or you’re not getting strategic financial and business advice, I would recommend Usman in a heartbeat knowing your business growth is his primary objective. Thank you Usman, I am forever grateful and will continue to highly recommend you and your team!

Usman is highly professional, efficient & highly knowledgeable accountant. His effective tax consultancy and accountancy services had made us save and plan tax. We highly recommend him.

Mike is a very knowledgeable and professional accountant. He has been my accountant for a long time.

We would highly recommend Mike and his team for their exceptional services