Spring Budget 2023: What could impact your business?
Chancellor Jeremy Hunt delivered his Spring Budget on the 15th of March – his second fiscal statement since he became Chancellor of Exchequer in 2022.
Hunt’s statement covered a vast area of policies from an extra £200m for potholes, over 50s apprenticeships (returnerships) to childcare support and disability benefits. But what measures are being put into place which could impact businesses?
Corporation tax increase
From April 2023, the amount of tax businesses will pay will rise from 19% to 25%.
If you’re currently worried about an upcoming corporation tax bill or have concerns in the future with the corporation increase, a finance facility could be an option. With a finance facility such as a business loan, you can pay off your tax loan in full and then make affordable monthly instalments.
Energy price cap increase will go ahead
From April 1st an energy bill price cap will increase. Businesses will receive a discount on gas and electricity wholesale prices as opposed to a fixed rate.
This is set to be in place until 31st March 2024 and is a reduction to the amount of support available to businesses.
Full capital expensing
Coming into effect from the 1st of April 2023, every £1 used to purchase equipment, vehicles or machinery can be deducted immediately in full form taxable profits. What this means exactly is that you could save 19% – 25% when purchasing new assets for your business.
Alongside this, you can use asset finance to preserve your cash flow and even look at a more expensive option as you spread the cost over a period of time.
Fuel duty cuts
During the last Spring Budget, there was an announcement of a temporary 5p fuel duty cut – the fuel cut will continue for another 12 months and fuel duty will be frozen.
R&D relief rate increase
Businesses that are eligible for R&D expenditure makeup at least 40% of their total expenditure should receive an effective credit of 27p for every £1.
12 UK Investment Zones
To help drive economic growth, the Chancellor announced that 12 UK locations will become ‘investments zones’ including the West Midlands, Greater Manchester, the North East, South Yorkshire, West Yorkshire, East Midlands, Teeside and Liverpool. There will also be one investment zone in Scotland, Wales and Northern Ireland.
These areas will have access to interventions worth £80m over five years, including tax reliefs and grant funding.
Free childcare increases
In an effort to get more people into work and fill the gaps in employment, the government have expanded their free childcare offering. Coming into effect will be 30 free childcare hours for children from 9 months to 5 years old. This could enable 60,000 more parents of young children back into work.
With opportunities to grow your workforce with more people becoming available to work, your business may be faced with extra costs to recruit and train new employees.
Finance for Unexpected Bills or Future Growth Plans
If you have an unexpected bill, an upcoming VAT bill or looking to invest in your business (purchase new machinery, hire new employees or looking to launch a new product or service for example) – a finance facility could be a solution for your business.
An unexpected bill or a gap in your cash flow can be resolved with a business loan or an invoice finance facility. To find out more about the finance solutions available for your business, speak with our team for a no-obligation discussion.
Call us on 01270 443510 or complete our contact form and we’ll be in touch with you as soon as possible.
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