The Chancellors budget announcements can appear complicated and doesn’t always directly relate to you and your florist business. Below we have outlined a few important points you should be aware of.
National Living Wage (NLW) and National Minimum Wage (NMW)
Following the recommendations of the independent Low Pay Commission, the government will increase the NLW for individuals aged 23 and over by 6.6% from 1 April 2022. The government has also accepted the recommendations for the other NMW rates to be increased.
From 1 April 2022, the hourly rates of NLW and NMW will be:
• £9.50 for those 23 years old and over
• £9.18 for 21-22 year olds
• £6.83 for 18-20 year olds
• £4.81 for 16-17 year olds
• £4.81 apprentice rate for apprentices under 19, and those 19 and over in their first year of apprenticeship.
for more information on apprenticeships Click here https://www.britishfloristassociation.org/trailblazer-apprenticeships-employers-guide/
Latest news on apprenticeships.
On 4 October the Chancellor of the Exchequer, the Rt Hon Rishi Sunak MP, announced the extension of the £3000 incentive payment for hiring a new apprentice until the end January 2022.
The key eligibility and application details are outlined below.
For apprentices with an employment start date from 1 April 2021 to 30 September 2021:
You still have time to apply, applications close on 30 November 2021.
Apprentices must have an employment start date from 1 April 2021 to 30 September 2021. They must also have an apprenticeship start date from 1 April 2021 to 30 November 2021.
For apprentices with an employment start date from 1 October 2021 to 31 January 2022:
Recruit now, apply later! Applications will open in January 2022.
Apprentices must have an employment start date from 1 October 2021 to 31 January 2022.
Business rates review
Business rates have been devolved to Scotland, Northern Ireland and Wales.
The government announced at Budget 2020 that it would conduct a fundamental review of the business rates system in England. The government’s objectives for the review were reducing the overall burden on business, improving the current business rates system and allowing the consideration of more fundamental changes in the long term.
• Supporting local high streets as they adapt and recover from the pandemic by introducing a new
temporary business rates relief in England for eligible retail, hospitality and leisure properties
for 2022/23. Over 90% of retail, hospitality and leisure businesses will receive at least 50% off their
business rates bills in 2022/23.
• Cutting the burden of business rates for all businesses by freezing the multiplier for 2022 to 2023.
Making the system fairer by moving to three-yearly revaluations from 2023.
• Providing stability ahead of the 2023 revaluation by extending Transitional Relief and the Supporting Small Business Scheme for 2022 to 2023 to protect small businesses from significant bill increases in the final year of the current revaluation cycle.
Plastic Packaging Tax
Legislation will be issued to ensure that the existing legislation for the Plastic Packaging Tax operates as intended. The tax applies to plastic packaging produced in or imported into the UK, that does not contain at least 30% recycled plastic. Plastic packaging is packaging that is predominantly plastic by weight.
The tax rate will be £200 per tonne of non-compliant plastic packaging. There will be an exemption for businesses that manufacture or import less than ten tonnes of plastic packaging per year. The tax will take effect from April 2022.
Vehicle Excise Duty (VED)
The government will increase VED rates for cars, vans, motorcycles, and motorcycle trade licences in line with RPI with effect from 1 April 2022.
For heavy goods vehicles, VED continues to be frozen in 2022/23. The HGV Levy is suspended for another 12
months from 1 August 2022, which should support the situation we currently find ourselves in.
Other Budget proposals
Tax measures include:
- a change in the earliest age from which most pension savers can access their pension savings without incurring a tax charge. From April 2028 this will rise to 57
- the retention of the £1 million annual investment allowance until 31 March 2023
- individuals disposing of UK property on or after 27 October 2021 now have a 60 day CGT reporting and payment deadline, following the completion of the disposal.
- a complete overhaul of alcohol duties that will see drinks taxed on their strength
- the cancellation of the previously announced rise in fuel duties
- pubs supported with a reduction in draught beer and cider duty
- an ultra-long-haul band of air passenger duty introduced.
Image by Nattanan Kanchanaprat