Autumn 2022 Budget Notes Below is a summary of some of the key points announced recently. Income Tax and National Insurance The current Income Tax and National Insurance thresholds are to be frozen at their current rates until April 2028. The additional rate Income Tax threshold, whereby income over £150,000 is currently taxed at 45%…
Read more → Autumn 2022 Budget NotesPreparing for the new tax year basis — Income Tax Self Assessment HMRC have provided the following notes regarding the change to the tax year basis: The rules HMRC uses to work out sole traders’ and partners’ profits for Income Tax in a Self Assessment return are changing for many businesses for 2023 to 2024 onwards. This…
Read more → Preparing for the new tax year basis – Income Tax Self AssessmentMini Budget (September 2022) – Key Points Below is a summary of some of the key changes, announced by the Chancellor today. Corporation Tax The planned increase in Corporation Tax to 25%, due to take place in April next year, has been scrapped and will therefore remain at 19%. See here for further details.
Read more → Mini Budget (September 2022) – Key PointsHMRC Delays For some time now, HMRC have been incredibly slow at dealing with most matters, in particular, responding to letters and appeals. The Times have published an article about this, which may be of interest. Do of course let us know if there are any matters outstanding that you are waiting to hear about…
Read more → HMRC DelaysWorking from home: claiming tax relief from April 2022 HMRC have released the following notes regarding the above. Government instructions to work from home where possible, including the legal requirement to self-isolate if you or a close contact tested positive for coronavirus, meant that in tax years 2020 to 2021 and 2021 to 2022 millions…
Read more → Working from home: claiming tax relief from April 2022Paying PAYE HMRC have produced some useful notes regarding how to pay PAYE and the correct references to use. Please click here for further details.
Read more → Paying PAYESpring 2022 Budget – Key Points National Insurance for Employees From 6 July 2022 the national insurance contributions (NIC) class 1 primary threshold (PT) for employees will be aligned with the income tax personal allowance. The PT will be £242 per week from 6 July (currently £184 per week in 2020/21, rising to £190 per…
Read more → Spring 2022 Budget – Key PointsHMRC are recognising that Covid-19 is affecting the capacity for taxpayers and their agents to meet their obligations and are showing some flexibility to help. The 2020/21 balancing payment of tax and first payment on account would ordinarily have been payable by 31st January this year, however, HMRC have confirmed that no late payment penalty…
Read more → Support for individuals who cannot pay their tax on timeSome of the key Budget announcements, provided by Croner Taxwise, are detailed below. Annual Investment Allowance The annual investment allowance (AIA), which is currently set at £1m per annum, was due to fall to £200,000 from 1 January 2022. The Chancellor has announced that the temporary increase will be extended, with the AIA remaining at…
Read more → Some of the key Budget announcementsIncrease in Tax on Dividends The Government has announced a 1.25% increase in dividend tax rates from 1st April 2022. The rates will increase to 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers and 39.35% for additional rate taxpayers. The £2,000 tax-free dividend allowance will remain. The increase in dividend tax rates will…
Read more → Increase in Tax on Dividends
