Government U-turn on top tax bracket abolishment
03 October 2022
Just over 1 week after the initial intent was declared in the government’s “Growth Plan”, Kwasi Kwarteng has announced that the scrapping of the additional rate of income tax will not go ahead.
The mini budget, which was packed full of surprises and shocks, gave the payroll profession many changes to get to grips with. The changes to income tax are not due to be implemented until April 2023, but software developers may have already begun work on implementing them.
The measures announced in the budget rocked the markets, causing the pound to reach a 35 year low against the dollar. This was partly caused by the lack of fiscal forecast, usually provided by the Office for Budget Responsibility (OBR). The news of the additional rate U-turn seems to be having an impact on the markets, with the pound strengthening again.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
