Government reverses mini-budget employment-related tax measures

The new Chancellor of the Exchequer Jeremy Hunt has today announced an almost total reversal of the various tax-related announcements made at the mini-budget on 23 September.  From an employment perspective the only measure to survive is the reversal of the recent national insurance rate increase with effect from next month.  This means that:

  • No changes will be made to the IR35 regime, which will continue to operate as it does currently;
  • There will be no reduction in the basic rate of income tax (the mini-budget announcement brought forward the rate cut but it will now remain at 20% indefinitely);
  • The 45% additional rate of income tax for the highest earners will remain in place; and
  • Dividend tax rates will remain the same.

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