The government announced on Friday 14 October, that the decision to keep Corporation Tax at 19% will be scrapped. In the mini-budget announced at the end of September, the plans were to keep Corporation Tax at 19% instead of raising them to 25%. This decision directly impacted all businesses making a profit of £50,000 or higher, as they could use the money they save on their business.
Nevertheless, on April 2023 Corporation Tax for businesses making more than £50,000 in profit will need to pay a rate of 25% in Corporation Tax. This idea isn’t new and was brought forward by the previous government. The decision to go forward with the rise was taken to ensure the UK’s economic stability, which has been affected by the mini-budget.