Mini-Budget: Highlights for Butchers
Today the Chancellor of the Exchequer delivered his Growth Plan 2022 to Parliament, we have pulled some of the key aspects together below
- Cut in basic rate of income tax to 19% from April 2023
- Reverse recent rise in National Insurance (NI) from 6 November
- Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely
- New and start-up companies able to raise up to £250,000 under scheme giving tax relief to investors
- Share options for employees doubled from £30,000 to £60,000
- No stamp duty on first £250,000 and for first time buyers that rises to £425,000 – comes into operation today
- VAT-free shopping for overseas visitors
- Planned increases in the duties on beer, for cider, for wine, and for spirits cancelled
- Government discussing setting up investment zones with 38 local areas in England
For full details on the Growth plan – https://www.gov.uk/government/publications/the-growth-plan-2022-documents
Energy Business Package: What does it mean for Butchers
The UK government has released its plans to help businesses with the spiralling energy costs. Below we have highlighted some key aspects for you to know but you can find full information here
- Discounts will be applied to energy usage initially between 1 October 2022 and 31 March 2023.
- The scheme encompasses all non-domestic contracts that are
- fixed term contracts signed on or after 1st April 2022 or
- those on flexible or out of contract tariffs.
- The government will provide a discount on unit prices for energy used by businesses. This will vary but consultancy Cornwall Insight says it could be as much as 45%.
- The support will be automatically applied to all eligible bills. You do not need to take action or apply to the scheme.
- Third party intermediaries (TPIs) / energy brokers have no influence over the per unit cost reductions that will be applied to energy costs under the scheme. You do not have to take out a new contract or change your contract for appropriate reductions to automatically be applied to your bills.
- The savings for energy used in October will be seen in your October bills, which would usually be received in November.
An example of savings you could receive and how it is calculated is Example 6: A small retail shop
A small retail shop uses around 1 MWh of electricity and 2 MWh of gas each month. They are on a variable contract, giving them a current monthly energy bill of around £1,400 per month. As they are on a variable contract, they can receive support up to the Maximum Discount (currently estimated to be £405/MWh for electricity and £115/MWh for gas). Applying the Maximum Discount rates means that their monthly energy bill reduces by around 45%, leaving them with a bill of around £800 per month.
Again, please be aware that the discount is automatic. If you get a message asking for your bank details or insisting, you need a new contract it could be a scam.
We do advise you to read through the full information for the specifics that may affect your business but of course please call us if you have any questions.