Chancellor Kwasi Kwarteng has announced a number of measures to be implemented as part of the ‘mini-budget’ held to help tackle the cost of living crisis.
The headline announcements are:
- A cut in income tax to 19% from April 2023
- The reversal of the recent rise in NI tax from 6 November 2022
- The scrapping of a planned rise in corporation tax from 19% to 25%
- A tightening of rules around universal credit
- A stamp duty cut for properties costing less than £250,000, rising to £425,000 for first time buyers
- The removal of the cap on bankers’ bonuses
- VAT-free shopping for visitors from overseas
- The cancelling of increases on alcohol
- The unveiling of new, low-tax investment zones
Commenting on how this might affect dental professionals, as well as those within the wider healthcare sector, Iain Stevenson, Head of Dental at Wesleyan Group, said: “Small businesses have needed help with running costs and dentists are no exception. Many practices are facing increasing costs due to the cost-of-living crisis, coupled with retention and pay increase considerations for staff, which are resulting in growing pressure on the bottom line.
“Measures such as cutting National Insurance and Corporation Tax alongside the business energy relief scheme will go some way to help address challenges. The new investment zones may create opportunities for dentists looking to expand their practices or start their own businesses.
“There was also a welcome development of making permanent the temporary £1 million level of the Annual Investment Allowance (AIA), which was due to expire after 31 March 2023. This is good news for dentists investing in their practices – whether that’s upgrading airflow equipment to maximise surgery capacity, or investing in surgical equipment – and will help make tax simpler for them.
“When it comes to personal finances, we know that dentists themselves are struggling with rising costs. The reversal of the National Insurance increase will see small increases in take home pay, but more help is needed to ensure dentists can cover their living expenses. We know that some are reducing their contributions to their pension or even withdrawing funds from savings to cover costs. This can have serious long-term implications and should be carefully considered and ideally done with financial advice.”
