Autumn Budget 2022 Key Points

  • Income tax personal allowance and higher rate thresholds frozen for further two years, until April 2028.
  • Main National Insurance and inheritance tax thresholds also frozen for further two years, until April 2028.
  • Dividend allowance will be cut from £2,000 to £1,000 next year then to £500 from April 2024. Meaning next year, you will pay an extra £88 in dividend tax and in 2024 an extra £131.
  • The annual exempt amount for capital gains tax will also be cut from £12,300 to £6,000 next year then to £3,000 from April 2024. This will mean that CGT on residential property will increase by £1,134 and £630 for all other gains.
  • The threshold for the 45% additional rate of tax will be cut from £150,000 to £125,140 from 6 April 2023. This is a tax charge of 5p per every pound earned over £125,140, to a maximum of £1,243.
  • Employment allowance will be retained at a higher level of £5,000.
  • Legally-enforceable minimum wage for people aged over 23 to increase from £9.50 to £10.42 an hour from next April
  • Electric cars no longer exempt from car tax from April 2025.
  • Reforms to R&D tax reliefs – for expenditure on or after 1‌‌‌ ‌‌April 2023, the Research & Development Expenditure Credit rate will increase from 13% to 20%, the SME additional deduction will decrease from 130% to 86%, and the SME credit rate will decrease from 14.5% to 10%.

If you would like some assistance or advice in anything mentioned above as well as PJCO’s payroll services, please get in touch on 01273 441187. 

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