Goodman Jones Spring Budget 2023

BUDGET l 15 March 2023 8 The staff-to-child ratios will be increased from 1:4 to 1:5 for twoyear-olds in England, although the new ratios will remain optional. Universal credit (UC) Many of the UC rates will rise by 10.1% from April 2023, including the standard and work allowances as well as the extra amounts for children, except for payments for first children born before 6 April 2017. From April 2023, the maximum amount towards childcare costs for one child will rise to £951 from the previously announced £646.35 a month. For two or more children, the maximum payment increases from £1,108.04 to £1,630. UC childcare payments will be made upfront if parents move into work or want to increase their hours. The administrative earnings threshold will be increased from the equivalent of 15 hours to 18 hours at national living wage for an individual UC claimant. Below this level they will receive more work coaching support alongside a more intensive conditionality regime. For couples, the administrative threshold will be abolished. Qualifying care relief increase The amount of income tax relief available for foster carers and shared lives carers using qualifying care relief will be increased from 6 April 2023. The annual fixed amount rises from £10,000 to £18,140, the weekly amount for children under 11 increases from £200 to £375 and for children 11 or older and adults the increase is from £250 to £450. BUSINESS TAXES Corporation tax rates Corporation tax is charged at 25% (main rate) and 19% (small profits rate) for financial years 2023 and 2024. The Patent Box deduction formula will be amended to ensure the correct amount of relief is given for claimants that are subject to the small profits rate. > SAVER Don’t ignore UC. The income ceiling for UC now stretches well beyond £60,000 for some couples. UC – even just 1p a month – can unlock other benefits so you should check your eligibility.

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