News
Autumn Statement 17.11.2022 Summary
18 - 11 - 2022
The Chancellor of the Exchequer presented his Autumn Statement on 17 November 2022.
With most of the Mini Budget measures reversed the
Chancellor of the Exchequer, Jeremy Hunt, presented his Autumn Statement on 17
November 2022. The below is a summary of the main measures changed or
introduced and is not intended to be a comprehensive summary. If you have any
questions regarding items not addressed please contact us to discuss further.
Personal Taxation
Ø Personal Tax Allowance 2023/2024 £12,570. The personal
tax allowance will be frozen at £12,570 until April 2028 ;
Ø National Insurance thresholds are frozen until April
2028;
Ø Additional Tax remains at 45% for income but the
Threshold at which Additional tax is applied will decrease from £150,000 to
£125,140 from 06 April 2023;
Ø National Living Wage to increase from April 2023 to:
Age
Range |
Rate
|
% increase |
23
years old plus |
£10.42 |
9.7% |
21
to 22 year old |
£10.18 |
10.9% |
16
– 17 year old |
£7.49 |
9.7% |
Apprentice
|
£5.28 |
9.7% |
Ø Dividend Tax threshold for 0% dividend tax will reduce
to £1,000 from 06 April 2023 and then to £500 from 06 April 2024. The rates
remain the same being 8.75% for basic rate tax payers, 33.75% for higher rate
tax payers and 39.35% for additional tax payers.
Capital Gains Tax
The
Capital Gains Tax exempt amount will be reduced from the current 2022/2023
level as follows:
Implementation
Date |
Exempt Amount £ |
06.04.2023 |
6,000 |
06.04.2024 |
3,000 |
VAT
VAT
registration threshold of £85,000 turnover will remain unchanged until 01 April
2026.
National Insurance
Ø
Most of the
Employees and Employers NIC thresholds and rates will remain at the levels announced
for 06 November 2022 until April 2028. The exceptions are:
v
2022/2023 Class 2
small profits threshold of £6,725 will remain for 2023/2024
v
Class 2 rate will
increase to £3.45 per week from April 2023;
v
Class 3 rate will
increase to £17.45 per week in 2023/2024.
Ø
Employment
Allowance will remain at £5,000 until April 2028;
Electric Vehicles
From
01 April 2025 electric vehicles will no longer be exempt from vehicle excise
duty (VED).
VED
will be introduced for:
v
Electric cars
v
Electric vans
v
Electric motorcycles
In
the first year zero emission vehicles registered on or after 01 April 2025 will
pay the lowest level of VED (currently £10 per annum). The VED will then
increase to the standard rate from the second year of registration (currently
£165 per annum).
Vehicles
with a list price of £40,000 currently pay an expensive car supplement VED. The
supplement will be extended to electric cars registered on or after 01 April
2025.
The
current 100% capital allowance for the provision of electric vehicle charging
points has been extended to April 2025.
Stamp Duty Land Tax (SDLT)
SDLT
only applied to England and Northern Ireland. Scotland and Wales have there own
versions of the tax and may change the rates and thresholds at any time.
The
SDLT changes announced in the mini Budget will be reversed from March 2025.
Corporation Tax
The
corporation tax increase to 25% for companies with a taxable profit of over
£150,000 and the marginal relief for companies with a taxable profit between £50,000
and £150,000 will take effect from 01 April 2023.
Small
companies with taxable profits of £50,000 or less will continue to pay
corporation tax at 19%.
Welfare and Pensions
Ø The State Pension will rise by 10.1% from April 2023
as the “triple lock” guarantee has been confirmed for the 2023/2024 year;
Ø The exact details of more one-off cost of living
payments are to be confirmed. Currently it appears that the following will
apply:
v
£900 for those on
means tested benefits to be paid in more than one payment;
v
£300 for
pensioners;
v
£150 for those on
disability benefits.
Tax Compliance
The
Government is investing an additional £79 million over the next 5 years. The
intention is to increase HMRC’s capacity to reduce non compliance amongst
wealthy tax payers and to address serious tax fraud.
The
above is meant as an indication of the main points included in the Autumn
Statement 2022. The information should not be relied upon as taxation advice.
Please
contact us at Foremans LLP on 01244 625 500 for a free no obligation discussion
on any of the changes above.

