Enabling companies to focus on business 4.13 Abolishing the Office of Tax Simplification – A simple tax system is critical for growth. Instead of having a separate arms-length body oversee simplification, the government will embed tax simplification into the institutions of government. It will therefore abolish the Office of Tax Simplification and set a mandate to the Treasury and HMRC to focus on simplifying the tax code. 4.14 Cancelling the Corporation Tax rate increase – The previously announced planned increase in the UK Corporation Tax rate from 19% to 25% that was due to take effect in April 2023 will not go ahead. Companies will continue to pay 19% on their taxable profits. This will maintain a competitive business tax regime, which will support investment, innovation and economic growth in the UK. 4.15 Bank Corporation Tax Surcharge – In line with the cancellation of the increase in the Corporation Tax rate, the scheduled change to the rate of the Bank Corporation Tax Surcharge will also be cancelled. From April 2023 banks and building societies will continue to pay an additional 8% rate of tax on their profits, rather than the reduced 3% rate that would have been the legislative default, leading to a combined rate of 27%. The increase in the Surcharge allowance to £100 million will go ahead to ensure that the tax system is supportive of growth within the UK banking market, promoting competition to the benefit of consumers. 4.16 Adjusting super-deduction rules – The government will amend some of the technical provisions for the super-deduction as a consequence of the Corporation Tax rate being retained at 19% from 1 April 2023. This will ensure that the relief continues to operate as intended. 4.17 Cancelling the increase in rate of Diverted Profits Tax – This was legislated to increase from 25% to 31% from April 2023, but will now be retained at 25% to keep the current 6 percentage point differential with the main Corporation Tax rate. 4.18 Alcohol duty reform – As inflation rates are currently high, the government will freeze the duty rates for all categories from 1 February 2023 to support businesses and help consumers with the cost of living. The government is today publishing the response to the consultation on the new alcohol duty system and draft legislation that will underpin the changes, and launching a consultation on some further technical issues. The reforms will be implemented from 1 August 2023. 4.19 VAT free shopping – The government will introduce a modern, digital, VAT-free shopping scheme, with the aim of providing a boost to the high street and creating jobs in the retail and tourism sectors. The delivery will include modernising the scheme that currently operates in Northern Ireland and introducing a new digital scheme in Great Britain – a consultation will gather views on the approach and design of the scheme to be delivered as soon as possible. The new VAT-free shopping scheme for non-UK visitors to Great Britain will enable them to obtain a VAT refund on goods bought in the high street, airports and other departure points and exported from the UK in their personal baggage. 4.20 Repealing off-payroll working reforms – The 2017 and 2021 reforms to the off- payroll working rules (also known as IR35) will be repealed from 6 April 2023. From this date, workers across the UK providing their services via an intermediary, such as a personal service company, will once again be responsible for determining their employment status and paying the appropriate amount of tax and NICs. 4.21 Minimum Service Levels – The government will introduce legislation that will ensure Minimum Service Levels can be put in place for transport services, limiting the impact that industrial action can have on the public’s ability to make the journeys that are essential for day-to-day life. The Growth Plan 2022 29