`The Chartered Institute of Payroll Professionals
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The measures announced in the budget rocked the markets, causing the pound to reach a 35 year low against the dollar. This was partly caused by the lack of fiscal forecast, usually provided by the Office for Budget Responsibility (OBR). The news of the additional rate U-turn seems to be having an impact on the markets, with the pound strengthening again.
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Businesses under 500 employees now considered SMEs Published: 3 October 2022 Emailed: 5 October 2022
In a press release from 2 October 2022, it was announced that businesses with under 500 employees will be classed as Small and Medium Enterprises (SMEs) for certain business regulation exemptions.
The EU defines businesses up to 249 employees as SMEs, however, the government has taken the step to cut red tape and increase this to 499.
This new threshold will apply from today (3 October 2022) and applies to all new regulations under development and review, including retained EU law. It is noted that these are not blanket exemptions and may be overridden in some cases.
The government plans to consult and expand the threshold up to businesses with 1,000 employees, once the impacts of the current expansion are known.
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Kwasi Kwarteng’s economic plan brought forward Published: 11 October 2022 Emailed: 12 October 2022
September’s Growth Plan brought some huge changes to the payroll and financial professions. But it also brought turmoil in the markets, forcing the Bank of England to step in with preventative measures.
Kwasi Kwarteng, chancellor of the Exchequer, initially set the date of the fiscal plan on 23 November 2022. This has now been revised to 31 October 2022.
This review will lay out plans for the costing of measures announced in the Growth Plan. The fast tracked plan will also come with an independent forecast of the UK economy’s prospects from the Office for Budget Responsibility.
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Kwasi Kwarteng replaced by Jeremy Hunt Published: 14 October 2022 Emailed: 19 October 2022
Today (14 October 2022), Kwasi Kwarteng was removed from the post of chancellor of the Exchequer, and was replaced by Jeremy Hunt, by prime minister, Liz Truss.
It's been confirmed that Hunt will proceed with delivering a ‘medium - term fiscal plan’ on 31 October 2022. It will be interesting to see how any plans the new chancellor has could impact the payroll profession.
Delivering a press conference, Truss confirmed she would reverse the planned freeze on the rate of corporation tax, meaning it will increase, as previously intended, from 19% to 25% in April 2023.
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