Connect with us

Hi, what are you looking for?

Editor’s Pick

The Chancellors’ winners and losers

High earners will benefit most from today’s mini budget announcement.

Speaking to Business Matters Paul Haywood-Schiefer, Senior Manager at leading tax and advisory firm Blick Rothenberg said: “The reversal of the recent increase to NIC rates will provide savings to all earners, where their income is above around £10,000 per annum (and assuming similar reductions are made in the devolved administrations in Scotland and Wales).

“Whilst the reduction provides welcome relief, the additional borrowing required to fund this, and the other introduced measures could cause substantial headaches for future governments.”

He added: “High earners will particularly benefit following the abolishment of the additional rate of tax, effective from April 2023, meaning that income over £150,000 will no longer incur a further 5% tax charge and instead be taxed at 40%. This measure itself only affects 629,000 taxpayers out of a total of 34 million in the UK, but the tax savings for these individuals will be significant. For example, a single earner on a £1million salary will save over £50,000 in tax and NIC from April 2023. This compares somewhat strikingly to a single earner on a £20,000 salary who will save only £218.

“A surprising “bumper” winner here could be directors of companies. Due to a quirk in the way NICs are calculated, a director pays on an “annualised basis” rather than a weekly or monthly figure. As such, the increase to the NIC rate from November may actually apply retrospectively from April for these individuals. The exact detail/mechanics will need to be checked here when further details are published.”

Haywood-Schiefer said: “The savings are slightly lower for a self-employed person, although that will be softened by class 4 NIC kicking in at a later amount.

“The ever-struggling pub and bar industry may feel some relief from the cancellation of the planned alcohol duty increases, but with rising costs on utilities, this is a small help to solve the ever-growing issues within this industry.

“Amendments to the rates of stamp duty land tax (although this is yet to be confirmed for Scotland and Wales) for all individuals provide some welcome relief in the face of ever-increasing mortgage interest rates, particular winners here are first time buyers who have seen a vast increase in both their 0% band for SDLT to £425,000 alongside an increase in the maximum property value that qualifies. Additionally, the plans to lower the barriers for development of land could provide further assistance in battling the housing crisis, although will potentially place the Government on a collision course with their usual support in the countryside.

“Small business owners and entrepreneurs will be relieved to hear that the tax incentivised investment schemes are being enhanced and expanded. They will also benefit from equivalent cuts to employer NIC, as well as cuts to the dividend rate from April 2023 which would see the top rate of tax on a dividend reduced from 39.35% to just 32.5%.”


Haywood-Schiefer said that the losers are: “Individuals who have paid stamp duty land tax in recent months, since the cancellation of the reliefs introduced during lockdown, will have been unfortunate to have fallen in this period of comparatively higher tax rates.

“Additionally, low-income individuals with income below the personal allowance will not receive any additional assistance in this period of high inflation. Whilst all households will receive the £400 to assist with energy bills, this is the only relief for the individuals who are typically the hardest hit by inflation.

“The real losers will be who has to pay for all these cuts later down the line. No costings have been provided for these measures, but the borrowing will be significant, especially in combination with the energy crisis help being offered. These cuts may well be short lived, but long felt.”

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...


Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...


Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...


REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...


Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.