What you need to know about the Spring Budget 2023

Chancellor of the Exchequer Jeremy Hunt has announced the government’s plans for tax and spending. Find out which policies will impact hair businesses in the UK

It was announced that the rate of inflation is forecast to fall to 2.9% by the end of 2023, according to the Office for Budget Responsibility. Here are other main business highlights for salon and barber shop owners, hairdressers and barbers from the Spring Budget.

Corporation Tax

UK corporation tax will go up from 19% to 25% next month. Businesses which make a profit of more than £250,000 will pay 25% tax on their profits from April. Companies with profits between £50,000 and £250,000 to pay between 19% and 25%. 

Childcare costs

30 hours of free childcare is expanded to cover one– and two-year-olds, where both parents are working. This will be introduced for two-year-olds in April 2024, and September 2024 for those aged over nine months.

Equivalent funding will be given to the authorities in Wales, Scotland and Northern Ireland.

Pensions

The current cap on the amount workers can accumulate in pensions savings over their lifetime before having to pay extra tax is to be abolished. Also, the tax-free yearly allowance for pensions will rise from £40,000 to £60,000.

Commenting on the Spring Budget announcement, Richard Lambert, chief executive of NHBF said: “it can’t be a ‘growth Budget’ with no action on the VAT threshold which is acting as strong disincentive to growth for small and micro sector businesses.

While the investment zones, support for childcare and ‘returnerships’ may benefit some in the sector, there is little to offer immediate relief to businesses locked into extortionate energy contracts. We call on the Government and Ofgem to facilitate urgent talks with suppliers to at least allow business contract payments over a longer period of time.” 

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