Budget tax round-up: everything you need to know

Budget tax round-up: everything you need to know

FTAdviser has rounded up everything you need to know about the tax changes made in the March 11 Budget.

In the last Budget in 2018, former chancellor Philip Hammond commented: "I didn’t come into politics to put people’s taxes up".

Mr Sunak had similar qualms - as far as some sectors of society were concerned. In fact, in a Budget that pledged to help boost small- to medium-sized businesses, some of the changes have been welcomed.

The government confirmed it is increasing the threshold for when national insurance becomes payable to £9,500, saving 31 million people across the UK up to £104 a year. This means those earning under £9,500 will pay no NI whatsoever.

George Parker, assistant manager at Blick Rothenberg said: “The changes to NIC allowances will save employees £104 a year, and self-employed individuals £78 a year. This is a great NIC boost to all.”

There were also changes to the pension annual allowance, specifically to help NHS consultants and senior GPs who have been reducing hours and expressing concern about cutting contributions in order not to breach the tapered annual allowance. 

However, individuals who continue to be affected by the tapered annual allowance, the highest earners, will see their minimum TAA reduced from £10,000 to £4,000.

Steven Cameron, pensions policy expert for Aegon, commented: “While it’s disappointing the chancellor didn’t simply scrap the dreaded ‘tapered annual allowance’, the £90,000 increase in the earnings threshold when it kicks in (now £200,000) is greater than expected and should offer comfort to many more higher earners that they shouldn’t be affected.

"But for those earning above £300k, an annual allowance of just £4,000 surely makes pensions redundant for them."

Caroline Le Jeune, Partner at Blick Rothenberg, said: “Changes to the pension annual allowance, so it doesn’t impact those earning under £200,000, is welcome. However, the further reduction to the annual allowance for those earning more is yet again disproportionately penalising high earners."

And small firms hoping for government to keep promises previously made to reduce the level of corporation tax from 19 per cent to 17 per cent, were disappointed: it remains at 19 per cent.

New levies were also introduced, including a levy to be paid by firms subject to the Money Laundering Regulations to help fund new government action to tackle money laundering and ensure delivery of the reforms committed to in the Economic Crime Plan.

But it wasn't all bad news: there's no duty on spirits, beer, wine and scotch, at least until the Coronavirus scare goes away, the abolition of the tampon tax, and no further stamp duty land tax hikes for UK buy-to-let landlords. 

And the government has committed to raising standards in the tax advice market. Shona Lowe, private client and corporate director for 1825, said: “The devil is in the detail on Budget day. Alongside the bigger headline grabbing announcements the government has published plans to consult on raising standards in the tax advice market.