Key Measures Announced in the Spring Budget that will Affect Businesses and Individuals Across the UK

Last week saw the Spring Budget announced by the Chancellor; this included a series of changes that could affect businesses and individuals across the UK. 

At Elite, we want to make sure that you understand the significant changes that have been announced in this year's budget. Here are the key takeaways from last week's announcement: 

Fuel duty freeze - There will be a freeze on fuel duty, and the 5p reduction will remain for 12 months. 

New R&D tax credit – Small and medium-sized businesses who spend 40% of their total expenditure on research and development will be able to claim a credit worth £27 for every £100 they spend.

Small business investment allowance increase – Every pound invested in IT equipment, plant, or machinery will be deductible from taxable profits. This measure is worth £9 billion for each year that it’s in place.

Draught relief for pubs – Supporting ‘the great British pub’, draught products in pubs will be up to 11p lower than the duty in supermarkets as part of the ‘Brexit pubs guarantees’. This is in addition to the freeze on UK alcohol duty rates which was extended by six months until August 2023 in the Autumn Statement.

Pension tax reform – The pensions annual tax-free allowance will increase from £40,000 to £60,000, and Lifetime Allowance will be abolished to help highly skilled individuals continue working for longer.

Energy Price Guarantee extension – The Energy Price Guarantee, which caps how much suppliers can charge per unit of energy used, will stay in place until June 2023. This three-month extension will help thousands of households cope with their energy bills amid the cost of living crisis. The Energy Price Guarantee is currently £2,500 per year and is set to increase to £3,000 per year.

The measure is expected to save the typical household £160 per year.

Childcare support for one and two-year-olds – 30 hours of free childcare will be provided for one and two-year-olds to help parents in England return to work, this will eventually cover all children from the age of nine months. This support is only currently available to parents of three and four-year-olds