Mini Budget aka Fiscal Statement

[SueEllen]

And they are up to 2.25%

Increase of 0.5%

https://www.theguardian.com/business...te-rise-latest

[jamesbrown]

It has mostly been leaked, as usual.
One prediction, I suppose, although not a confident one: when they reverse the NI increase, they probably won't reverse the increase in dividend taxation

From April 2023 Mr Kwarteng will also scrap an increase to dividend tax. This change was brought in alongside the payroll tax increase to raise taxes on people paid in a different way.

https://www.bbc.co.uk/news/business-...5Bpost+type%5D

[Paddy]

And they are up to 2.25%

Increase of 0.5%

https://www.theguardian.com/business...te-rise-latest

Government advice is that you must pay your energy bills even if it means borrowing to pay for it. Government then puts up interest rates to fight inflation caused by energy companies. You couldn't make it up.

[mallisarealperson]

https://www.telegraph.co.uk/politics...y-freeze-live/

But no mention of the NI threshold????

Is that going back also?

[jamesbrown]

https://www.telegraph.co.uk/politics...y-freeze-live/

But no mention of the NI threshold????

Is that going back also?

No, it isn’t, the higher threshold is being retained.

[mallisarealperson]

Not bad if you still pay yourself a small salary and div.

[jamesbrown]

This article (paywalled) goes big on the IR35 review but, ultimately, a review isn’t reform and the HMT and HMRC opposition to reform will be massive:

https://www.ft.com/content/ff7ec897-...d-bebab0f2a612

The government is also pursuing changes to how self-employed business owners are taxed, to free small companies from unnecessary costs. Truss is committed to reviewing the tax levied on one-person businesses, freelancers and contractors under so-called IR35 rules, which have been attacked for adding the sorts of costs that permanent employees face without the associated benefits. IR35 rules have been overhauled in recent years, shifting responsibility from contractors to employers over whether they should be considered to be employees for tax purposes. Employers fearing large tax bills have as a result chosen not to use contractors, which has had a chilling effect on the freelance economy.

[The Spartan]

Whatever they do about stamp duty won't be replicated in Wales no doubt, which a relief in a way. House prices near me have gone crazy a 3 bed Semi detached house down the road just sold for £210k I know it doesn't sound a lot but I live in a small village and it's not the most sought after area, the property was bought 4 years ago for £120k. Salaries outside of Cardiff are pretty low too, I just can't fathom what is going on.

[dsc]

Agree that stamp duty is a tulipty tax, particularly in the way that it inhibits free movement, but they are not getting rid of it for that reason - they are simply trying to pump the housing market up again (and they'll probably succeed..).

Reduced stamp duty is a way to keep property sales going with the interest rates going up, the issue is that interest rates adjusted for affordability is actually going through the roof, ie. people are getting close to the levels where they are slowly not being able to afford repayments. Some say "eh b*llocks, interest rates used to be at 15% and it was fine", but then apparently people had way more money left after paying their mortgages, so paying a bit more monthly wasn't such a massive shock. Nowadays people are often stretched to the limit to be able to afford a sh*te two bed, so if you add an extra £50-£150 to their monthly repayments, coupled with the overall increase in everything, you are close to breaking the system.

Also all the emergency budgets to help people with the cost of living will only push inflation up, it's like bloody covid relief funds once again with billions "free" cash printed. And yes I realise the government is between a hard place and a rock, but it doesn't change reality.

[tazdevil]

apparently people had way more money left after paying their mortgages, so paying a bit more monthly wasn't such a massive shock.

Yes the days when £20 to £30K a year was a top salary for a senior IT guy and £25 an hour was a brilliant contract rate. in reality living the middle class life style as a younger person has always been on the limit for most self funding people. It's all supply and demand and I witnessed a number of big price crashes due to a glut in supply and got caught out myself in the late 70's to early 80's Netherlands where the prices boomed and then collapsed due to supply I see the same thing starting here with loads of new builds across the country waiting to find new owners Negative equity for recent purchasers is coming soon