How the 2023 Spring Budget will Impact the Payroll Profession
Chancellor, Jeremy Hunt, spoke for almost an hour on Wednesday 15 March, where he set out four areas of focus which covered:
• Enterprise
• Employment
• Education
• Everywhere
The headline changes which will impact the payroll profession 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.
