It's that time of year, the Chancellor's Spring Statement is this Wednesday. He'll be unveiling his spending plans and changes to the public purse over the coming years.
In advance of past statements, many of the measures have been leaked to the press giving us a good idea of what to expect. However, on this occasion there hasn't been much information released and so the expected impact it will have on innovative businesses largely remains shrouded in mystery.
It seems almost certain that the rise in National Insurance Contributions (NIC) by 1.25% is set to go ahead and will not be cancelled on Wednesday. This rise will come into force from 1 April 2022 on employer and employee NICs. Although, there might be some respite for people on the lowest salary with an announcement to increase the threshold at which people are required to start paying.
In terms of the R&D tax relief schemes, there might be additional confirmation about the data and hosting costs being included as eligible with a small update on the consultation which has happened over the past year.
We're still hopeful that an increase to the R&D Expenditure Credit (RDEC) rate will be announced to offset the increases in corporation tax that are on the horizon.
Look out for MMP posts and articles after the Spring Statement, when we will provide a full rundown of the changes and announcements that will impact innovative businesses.
If you have any questions about The Spring statement then please get in touch or to speak directly and confidentially to a consultant, call us.
David and Alexis are the founding Directors of MMP Tax.
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