and a small loss for really small employers
It depends on your definition of Small businesses, but small employers can claim back their NI contribution (now increased up to 10k) through employment allowance.
The NI increase won't end up costing my business anything. We were worried that we could have been forced to close with the business rates relief potentially being completely removed (but its protected by rural rates relief in my case) and adding NAT insurance costs could have put unachievable costs on the business. Thankfully it seems to have been sensibly thought out.
Did you hear the baying idiots in the chamber roaring in delight at 1% cut in duty for draught beer. They were genuinely more animated (or wanted to appear more animated) about that than any of the big stuff like Nat Insurance, NHS spending or Non Dom.
Idiots.
Look at the audience... No normal person I'd going to give a flying figg If their four pound and four pence pint suddenly only costs four pounds.
Good for the struggling hospitality trade I guess.. But surely there are bigger fish to fry?
think the hike in CGT only really impacts people who are gaming the “earn minimum wage and take the rest as profits” approach, which I don’t have much problem with. The vast majority of other folks can afford to wrapper any investments they have (a couple get a total of £160k per year in tax free investments, combining pension and ISA), so not much impact there
I think ( hope) I'm going to get hit by some CGT from my company share option scheme next year, even with judicious use of ISAs.
(Which is fine of course. I don't have an issue with it )
Our business will be affected by the NICs (as will our competitors of course), and personally I'll be affected by the CGT because of a employee ownership share scheme that's looking to pay out in 2026.
Hard to feel aggrieved by it though, I'm only in the position to be affected because I'm fortunate in the first place. Also I'd like functioning public services please and thank you.
Actually iht on pension pots is an interesting one. As more and more of the aging population will be using drawdown strategies instead of annuities I think that will become a much larger pot to tax.
IHT exemption on pension pots was a ridiculous loophole to start with. I mean, I know everyone wants all taxes abolished, but what on earth is the rational justification for allowing you to specifically pass on your own unspent income directly to your children (or other beneficiaries) without even having paid income tax on it when you got paid in the first place?
Given how much it was mentioned in the run up,
These were all kites flown by the right wing press to stir up their audience (Hello Daily Telegraph and Spectator, you're looking pretty stupid now). The tax free limit on 25% from pensions will still be subject to fiscal drag for the minority with a large pot. We should, however be encouraging people to save into pensions, but not through a 60% marginal rate at 100-125k income. I'd like top see restitution of personal allowances, with an increase in higher rate of taxation. The 100k trap makes no sense economically, especially with loss in other benefits.
And yes the IHT on pension pots was just a loophole. Lump it into the estate proper and tax IHT accordingly. It is of course exempt when passing to a surviving spouse, who may still have time to spend it.
One of the changes that appears to have flown under the radar a bit are the changes to VED rates:
As announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2024-25 to change the Vehicle Excise Duty (VED) first year rates for new cars registered on or after 1 April 2025. These are as follows:
• zero emission cars will pay the lowest first year rate at £10 until 2029 to 2030
• rates for cars emitting 1g/km to 50g/km of CO2, including hybrid vehicles, will increase to £110
• rates for cars emitting 51g/km to 75g/km of CO2, including hybrid vehicles, will increase to £130
• all other rates for cars emitting 76g/km of CO2 and above will double from their current level.
So - buy/lease a big V8 Range Rover or similar next year, and you'll be paying about £5,500 a year in VED alone.
Ha ha to infinity.
IHT exemption on pensions was a clear tax dodge for the wealthy. Most people need to spend their pensions to live, not keep them untouched to reduce the value of their estate when they die.
Good decision to abolish it. Although they've got till April 2027 to either die or put another plan in place.
If you’re on minimum wage and need to drive to work and back every day, I doubt you’d be marvelling at how little it was costing you
My guess is that more people on minimum wage would benefit from cheap bus fares than would benefit from cheap petrol.
So – buy/lease a big V8 Range Rover or similar next year, and you’ll be paying about £5,500 a year in VED alone.
Ha ha to infinity.
Nope............
Well, the absolute top of the range, non plug-in hybrid model in SV squeaks in just over the 255g at 265 so that is affected. But that's got a starting price of £160k.
But pretty much every other model is a plug in hybrid and has official emissions <20g/km.
Obviously the test is bull****. But they won't be paying that tax.
I must say I do miss Tory economics though. Considered, factual and deployed with cunning intellect and a deep understanding of the subject matter.
https://twitter.com/carolvorders/status/1851645841338986789
So – buy/lease a big V8 Range Rover or similar next year, and you’ll be paying about £5,500 a year in VED alone.
Ha ha to infinity.
It's just first year rates though, year two onwards are inflationary increases. So, your £120k RR is now £123k - those with the finances to buy them won't really feel it.
Meanwhile, double cab pick ups being treated as cars once again is pretty big, plus a doubling in BIK for hybrids and increases in pure EV from 2 to 9% BIK over the next few years will hit a lot of company car driving 'working people'...
The bus ticket cap is absolutely massive in terms of regressive tax burden.
50% increase on some of the lowest paid workers in the country not to mention students.
My daughter will have to find around an extra £25 a month to get to sixth form and my other daughter at uni will also be hit - that will be around a £40 hit per month on our family
We are luckily in a position to be able to help them out with that but many thousands of people wont be.
Not a good decision IMO bearing in mind other areas that could have raised this amount.
Meanwhile, double cab pick ups being treated as cars once again is pretty big, plus a doubling in BIK for hybrids and increases in pure EV from 2 to 9% BIK over the next few years will hit a lot of company car driving ‘working people’…
It will, however the majority of EV company car drivers are people who didn't run a cc before that massive tax break came in. Now EV sales are naturally a little higher, and the second hand market is flooded with stock (look at the prices), closing that tax break makes sense
My CC will probably be the only new car I ever 'own' then! In retrospect perhaps shouldn't have chosen a MG.
I can't seem to embed Tweets...
Anyway, Truss has given her expert opinion on today's budget. Which is just epic to type let alone watch!! 😀
https://twitter.com/Tush27J/status/1851586005901402304
I think the hike in CGT only really impacts people who are gaming the “earn minimum wage and take the rest as profits” approach, which I don’t have much problem with. The vast majority of other folks can afford to wrapper any investments they have (a couple get a total of £160k per year in tax free investments, combining pension and ISA),
I think plenty of normal folks will be caught by things like share schemes they get as a benefit of work. Certainly I'm no millionaire but it'll cost me a couple of hundred quid at least. Don't really mind as long as they use it to improve stuff in society, but to say this budget won't impact working class folks is a bit disingenuous
Anyway, Truss has given her expert opinion on today’s budget. Which is just epic to type let alone watch!!
Its even funnier that she still thinks the tellybox people get her on for everyone to benefit from her words of wisdom, when the truth is she’s a modern day freak show. Let’s all point and laugh at the delusional fruitcake who still thinks she’s relevant and not a total laughing stock
The groans from the Tory spin doctors whenever she pops up again must be audible from miles away
The groans from the Tory spin doctors whenever she pops up again must be audible from miles away
The Libdems called her in from the cold but her work is not yet done, her mission not yet fulfilled.
Whilst there is still a Tory party to destroy she will never rest, never relent.
We are forever in her debt. Literally. 😉
Can someone explain the car road tax thing again to me please, really slowly !
Yesterday, if I bought a car assume petrol or hybrid for this discussion, not pure EV) , say a £39k Subaru Forester mild hybrid (135g/km) ... I would pay £18p or £190 a year road tax. Same if I got the £39.5k version of the Outback (petrol only, 191g/km).
Now if that same car was valued (list price / DVLA defined price) of £say £41k (ie over £40k list price) then as I understood it, the road tax would be £590 for the first 5 years, then £190 thereafter (ignoring any subsequent increases). Because there was basically as £2k tax on anything over £40k, grabbed by the Gov in 5 equal chunks of £400 a year (giving a £400 luxury car tax + £190 normal road tax = £590)
What would I pay since the budget (from April 2025).
There were the words 'first year' in some of the quoted stuff earlier - how about years 2 through to 15 ?
.
Can someone explain the car road tax thing again to me please, really slowly !
The first year 'tax' is doubling, but that's included in the on the road price of the car, so effectively car prices will go up and the difference is going to the treasury.
Thereafter, the additional £410 on top of the VED for cars over £40,000 list price (regardless of the price you pay for it) is paid from year two to six and this hasn't changed today (was half expected to).
Tax on tobacco to increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco
Who amongst you lot on STW reported to the Chancellor of the Exchequer, The Rt Hon Rachel Reeves MP. that I smoke hand-rolling tobacco and should have a tax hike of above 10% for hand-rolling tobacco?
The current 50 grams of hand-rolling tobacco is £31.50 and I can have a few puffs if I roll it thin to last me a while.
Does the Chancellor of Exchequer now just want me to smoke the hand-rolling tobacco paper only?
think plenty of normal folks will be caught by things like share schemes they get as a benefit of work. Certainly I’m no millionaire but it’ll cost me a couple of hundred quid at least
Can I check if you've looked into transferring them into an ISA to minimise tax?
The thing I find annoying is that no one points out a basic point, putting money into the NHS is the same as spending it on a large infrastructure project in terms of benefit. The money spent on wages especially at the ‘normal’ end of the scale- admin, orderlies, nurses and resident docs, will be pumped straight back into the economy. Buildings will see money recirculating as well. Some high level equipment, scanners MRI and so on are all available in the UK, not all obviously.
On top of this we have a healthier workforce, happier people, and cheaper long term health costs if waiting time are reduced.
Surely spending money in the NHS is always a benefit as long as it’s being spent well, not some black hole that sucks money in and it disappears.
chewkw
I smoke hand-rolling tobacco
Chew, zero malice intended here but is that really the heaviest financial burden your "smoking" entails?
Come on you tyke, out with it, out with it!
You are amongst friends... generally bloody confused friends after we read your posts, but friends none the less!
You forget the Covid £ that the tories funnelled to their mates who promptly off shored it.
Increasing the bus fare cap to £3 saves £350m (compared to keeping it at £2).
Keeping fuel duty as is will cost £20bn.
Could be bullshit but I'm seeing people on Twitter saying the cost of maintaining the fuel duty freeze and the annual bus ticket revenue for the whole of England are practically identical at about £3bn. IOW you could have made all buses free simply by reinstating the fuel duty escalator...
Increasing the bus fare cap to £3 saves £350m (compared to keeping it at £2).
Keeping fuel duty as is will cost £20bn.
That decision was pure politics, it doesn't make financial sense, it's objectively not fair and it doesn't help the environment.
But...
They would have been annihilated in the press, online and in almost every living room tonight. That's ok I suppose but it's the sort of detail that voters will remember in 5 years time at the next GE and likely punish them for.
As a political move, to ensure they stay in power long enough to actually make real positive changes in the future, it was the right choice in that context. Sadly.
Looks like inheriting the family farm just got turned on its head.
Thanks to the wealthy and their aiders hijacking the sector to avoid inheritance tax.
I'm sure the big farms can take it, and what a privilege to inherit that anyway even after tax, but it looks sketchy for small family farms.
It was a giant loophole though. People gaining their wealth outside farming, and then in their retirement years buying farms, playing at running them (or letting others pay them for the privilege of running them), ready to pass on the land to their adult and already wealthy kids as a nice big tax free inheritance.
Does the Chancellor of Exchequer now just want me to smoke the hand-rolling tobacco paper only?
If it’s any consolation they’re slapping a tax on vape liquid….
And so it begins…
I expect it’ll be 20 quid a bottle in a few years, with £18.50 of that being tax
It was a giant loophole though
Indeed. But in closing it, and doing so in this manner, taking out the farms even just big enough to sustain a family.
Laura Trott similarly got a kicking on Politics Live
To be generous to her… she’s not the sharpest tool in the box.
Its a telling sign of where the Tories presently are that her and Gareth Davies are both ministers in treasury roles - so nothing important then - who you wouldn’t leave unsupervised with a pair of scissors, never mind the counties economy
Basically a Tory budget through and through, except with no green measures. FFS, keeping the fuel duty discount is appalling when you've increased the price of bus travel by 50%.
I dunno Flaperon, the Mail aren't happy with this Tory budget, mind you, when is the Mail happy?
Anyway, if they have gone after the strivers that's a step too far. I for one know many a, erm, striver.
However, the good news is, "it's the most left wing budget for decades" which is likely to surprise many posters on here including me!
"Pushed taxes to the highest level ever" is a funny thing to be able to say. It depends massively on how you measure it of course and the simple statement ignores who the burden falls on, but it's not an unreasonable statement overall. Except that it was also true when by the exact same metric George Osborne pushed taxes to the highest level ever in 2012, then it was raised to be the highest level again in 2019, and then in 2020 and 2022, and the last tory budget only avoided it by kicking a bunch of increases down the road- but would have led to the highest level ever in 2026.
But of course when Labour do it it's different. I don't agree with much about this budget but it's no surprise that some of the coverage is completely dishonest.
