The UK’s business groups largely welcomed the measures taken in the Chancellor’s Spring Budget.

The Confederation of British Industry (CBI) branded the Budget as a ‘strong second act’ in Mr Hunt’s plan for stability and growth. Matthew Fell, Interim Director General of the CBI, said:

‘The CBI called for action on people and productivity and the government has delivered support for both. Measures to help households and businesses will secure the growth we need to boost living standards for all.

‘Boosting childcare provision is a big win for businesses struggling to recruit and retain, and parents balancing care and career needs.’

The British Chambers of Commerce (BCC) praised the Chancellor for his changes to free childcare for working parents.

Shevaun Haviland, Director General of the BCC, commented:

‘The Chancellor has acted to address the unfilled jobs blighting our economy. It is especially good to see the help on childcare and for over 50s workers. The plans for full capital expensing are also a step in a right direction to offset the rise in corporation tax, but the jury is out on how it will impact businesses compared to the super-deduction scheme.’

Meanwhile, the Institute of Directors (IoD) said that it ‘strongly supports’ the Chancellor’s decision to allow all investment expenditure to be set against revenue for tax purposes in the year it is spent.

Kitty Ussher, Chief Economist at the IoD, said:

‘Our economy has been held back in recent years because people running businesses have felt nervous of committing to investment when the climate is so uncertain. The introduction of 100% full expensing for the next three years is therefore very welcome, and we urge it to be continued thereafter.’

However, the Federation of Small Businesses (FSB) stated that the Budget ‘will leave many feeling short-changed’.

Martin McTague, National Chair of the FSB, said: ‘The distinct lack of new support in core areas proves that small firms are overlooked and undervalued. Budgets are about tough choices, and with . . . billions being allocated to big businesses and households, 5.5 million small businesses and the 16 million people who work for them will be wondering why the choice has been made to overlook them.’

Internet link: CBI website BCC website IoD website FSB website

HMRC has reminded married couples eligible for the Marriage Allowance to make use of the tax relief.

Over 2.1 million couples currently benefit from the Allowance, HMRC said. Married couples could save up to £252 a year, it added.

Eligible couples are those who are married or in a registered civil partnership; one spouse or partner does not pay income tax, or their income is below the Personal Allowance of £12,570; and the other spouse or partner pays income tax at the basic rate.

It is possible to backdate claims to include any tax year up to 6 April 2018, which could be worth up to £1,242 in tax relief.

Angela MacDonald, Deputy Chief Executive at HMRC, said:

‘We want every eligible couple to benefit from marriage allowance tax relief. Couples whose circumstances have changed – perhaps one of them has stopped working or taken a lower paid job – may not realise they are entitled to claim.

‘It’s easy to find out what you may be due – search ‘Marriage Allowance calculator’ on GOV.UK to get started. By applying on GOV.UK rather than through a third party, you get to keep 100% of the tax relief due.’

Internet link: GOV.UK

A record 11.7 million self assessment taxpayers submitted their tax returns by the 31 January deadline, HMRC has revealed.

The final day for self assessment returns saw 861,085 customers file online to meet the deadline, some with minutes to spare. There were 36,767 customers who filed in the last hour before the deadline, but the peak hour for filing on the day was between 4pm and 4:59pm, when 68,462 customers submitted their tax return.

More than 12 million customers were expected to file a self assessment tax return for the 2021/22 tax year. HMRC is urging customers who missed the deadline to submit theirs as soon as possible or risk facing a penalty.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘Thank you to the millions of customers and agents who got their tax returns in on time. Customers who have yet to file, and who are concerned that they will not be able to pay in full, may be able to spread the cost of what they owe with a payment plan.’

Internet link: HMRC press release

The Treasury and the Bank of England (BoE) have suggested that a state-backed ‘digital pound’ is likely to be launched this decade.

Both the Treasury and the Bank said that the public should have access to ‘safe’ digital money that can be used easily.

A central bank digital currency (CBDC) would use similar technology to cryptocurrencies, but the digital pound would be ‘less volatile’, according to the BoE.

Andrew Bailey, Governor of the Bank of England, said:

‘As the world around us and the way we pay for things becomes more digitalised, the case for a digital pound in the future continues to grow. A digital pound would provide a new way to pay, help businesses, maintain trust in money and better protect financial stability.

‘However, there are a number of implications which our technical work will need to carefully consider. This consultation and the further work the Bank will now do will be the foundation for what would be a profound decision for the country on the way we use money.’

A consultation has been launched on how the CBDC would work.

Internet link: BoE website