New Chancellor Jeremy Hunt confirms off-payroll working will remain and that income tax rates will not change.

Following the Prime Minister’s announcement that corporation tax rates would increase from April 2023, Chancellor Jeremy Hunt has announced the reversal of many tax measures that were introduced at the mini-budget on 23 September. This announcement was made ahead of the Medium-Term Fiscal Plan on 31 October.

The Chancellor stated in his speech that more difficult decisions will have to be made on both tax and spending. In light of this, government departments will be asked to find efficiencies within their budgets. It is expected that the Chancellor will announce further changes to fiscal policy on 31 October.

The Chancellor confirmed that the basic rate of income tax will remain at 20%. At the mini-budget announcement, the planned cut to the basic rate of income tax to 19% was brought forward from April 2024 to April 2023.

The 1.25 percentage point increase in dividend tax rates that was introduced alongside the increase in national insurance contributions rates from April 2022 will remain. Dividend tax rates will no longer be cut from April 2023. The 2017 and 2021 reforms to the off-payroll working rules will remain in place. They will not be repealed from April 2023.

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