UK Autumn Budget 2021: Is it going to affect the taxes? If yes, how?

UK autumn budget 2021

In recent weeks, the treasury has already revealed a string of new economic policies, including the National Insurance charges the employers and workers need to pay along with a rise in the living wage.

Many tax changes were announced before the Budget; the Chancellor revealed the complete tax plans with several changes that the British taxpayers need to comply with this afternoon.

“Today’s Budget does not draw a line under Covid; we have challenging months ahead. And let me encourage everyone eligible to get their booster jabs right away. But today’s Budget does begin the work of preparing for a new economy post-Covid. The Prime Minister’s economy of higher wages, higher skills, and rising productivity. Of vital public services, vibrant communities and safer streets. An economy fit for a new age of optimism. Where the only limit to our potential is the effort we are prepared to put in and the sacrifices we are prepared to make.”

-Rishi Sunak (Chancellor of the Exchequer).

Further, Rishi Sunak also said:

“Taxes are rising to their highest level as a percentage of GDP since the early 1950s.
“I don’t like it, but I cannot apologise for it – it’s the result of the unprecedented crisis we faced and the extraordinary action we took in response.
“But now, we have a choice. Do we want to live in a country where the response to every question is: what is the government going to do about it?
“Where every time prices rise, every time a company gets in trouble, every time some new challenge emerges, the answer is always: the taxpayer must pay?
“Or do we choose to recognise that government has limits?
“That Government should have limits. If this seems a controversial statement to make, then I’m all the more glad for saying it because that means it needed saying, and it is what we believe.”

Updates on taxes:

For an average worker in the UK, the national Insurance increased by 1.25% points

An investment of Euro 36 billion is promised in the coming three years to assist the NHS to recover from the pandemic and reconstructing the adult social care system for people to no longer suffer from catastrophic care costs.

From October 1, 2021, and March 31 2022, 12.5 % of VAT will apply until the standard rate of 20% reverses.

There’s been a cut of Euro 7 billion in business rates in the Budget. The Chancellor added: “First, we will make the business rates system fairer and timelier with more frequent revaluations every three years. The new revaluation cycle will be delivered from 2023.”

Further, he went on to say: “We’re introducing a new investment relief to encourage businesses to adopt green technologies like solar panels. And I’m announcing today that we’ll accept the CBI and the British Retail Consortium’s recommendation to introduce a new ‘business rates improvement relief’.

“From 2023, every single business will be able to make property improvements – and, for 12 months, pay no extra business rates.”

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