What Does The Mini Budget Mean For Payroll Professionals?

The Chartered Institute of payroll professionals (CIPP) has produced a summary of the Growth Plan announced by chancellor of the Exchequer, Kwasi Kwarteng, last week. The CIPP summarises the changes announced and what they mean for payroll professionals:

• reversal of the National Insurance increase for 2022-23

• scrapping the health and social care levy for 2023-24

• basic rate of income tax reduced to 19% from April 2023

• scrapping the additional rate of income tax in England Wales and Northern Ireland from April 2023

• new “investment zones” across the UK

• 2017 and 2021 off payroll (IR35) reforms to be scrapped from April 2023.

For more information on the mini-budget download our overview.

UPDATE 3/10/22: The U.K. government reversed a plan to scrap the top rate of income tax.

“It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our economy,” Kwarteng said in a statement.

“As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened.”