Chancellor, Jeremy Hunt, presented the Spring Budget Update, where he set out four areas of focus which covered:
- Enterprise
- Employment
- Education
- Everywhere
The headline changes which will impact payroll are:
- OBR report inflation will fall from 10.7% in final quarter of last year to 2.9% by end of 2023
- 12 new investment zones to be added, at least one in each of Scotland, Wales and Northern Ireland. Watch out for National Insurance impacts for employers
- full capital expensing for IT equipment, plant and machinery. Worth £9 billion per year
- a new kind of apprenticeship targeted at over-50s, ‘returnerships’
- increase pensions annual tax free allowance, to £60,000
- abolition of the pensions lifetime allowance
- introduction of 30 hours free childcare of every child over 9 months to eligible households, rolled out in stages, from 2024
- to encourage more people to join the childminding profession, new joiners will receive incentive payments of £600, rising to £1,200 for those joining through an agency
- the government will bring forward a further set of tax administration and maintenance announcements later in the spring at a Tax Administration and Maintenance Day.
For more information on payroll, speak to Dena Dixon on 01428 609009, email info@pay-nex.com or visit https://pay-nex.com/
