Friday 14th October 2022 saw one of the shortest service Chancellor of the Exchequer as Kwasi Kwarteng stands aside at the request of the prime minister Liz Truss.
Following the Growth Plan 2022 announcements in cuts to both income tax and Corporation tax, the value of government gilts has been under significant market pressure along with the value of the pound.
U-turns on the abolition of the Additional 45p tax rate has been cancelled. And the prime minister also confirmed that the Corporation tax rise to 25% would no longer be cancelled but go ahead.
The changes to National Insurance contributions with the repeal of the Health and Social Care Levy have already been passed by Parliament and will go ahead from 6th November 2022.
The exchange of letter between Kwasi Kwarteng and Liz Truss:
Opinion – payroll impacts
The payroll software developer community continue to face a dilemma of short notice change with the 3rd National Insurance change of the 2022/2023 tax year.
The cancelling of the April 2023 introduction of the planned Health and Social Care Levy will bring some relief.
However, when will the position of change for April 2023 be known.The next fiscal event spookily coincides with Halloween, how many treats will now be turned to tricks? Will the announced reduction to the basic rate of tax being brought from April 2024 to 2023 go ahead?
Is the UK potentially looking towards the appointment of a new prime minister?