Autumn Budget 2022 | XNM Accountancy

Income Tax & NI Thresholds Maintained

Income Tax and National Insurance contributions thresholds will be fixed at their current rates until April 2028. The government will legislate for the income tax measures in Autumn Finance Bill 2022, and NICs changes through secondary legislation in early 2023

Additional Rate Tax Band Threshold Lowered

The Income Tax additional rate threshold (ART) will be lowered from £150,000 to £125,140 from 6‌‌‌ ‌‌April 2023. The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales, and Northern Ireland. The ART for savings and dividend income will apply UK-wide.

Dividend Allowance

The tax free Dividend Allowance will be reduced from £2,000 to £1,000 from April 2023, and to £500 from April 2024

Minimum Wage

Low paid workers will benefit from an increase in the national minimum wage from April 2023. This shall see the minimum wage for anyone over the age of 23 increase from £9.50 to £10.42, £9.18 to £10.18 for people aged between 21 to 22, £6.83 to £7.49 for people aged between 18 to 20 and the apprentice wage or peoples aged under 18 increases from £4.81 to £5.28.

Employment Allowance & Employers NI

Employment allowance will remain at £5000 until it is review in April 2028. Along with the freeze of Employment National Insurance rates. The rate of 13.8% that is paid on all employees who earn more than £9,100 will remain in place until April 2028.

Capital Gains Tax Annual Exemption Changes

The Capital Gains Tax Annual Exempt Amount will reduce from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024. The government will legislate for this measure in Autumn Finance Bill 2022

Stamp Duty Nil Rate Threshold Increase

The level at which house-buyers begin to pay stamp duty has doubled from £125,000 to £250,000. This remains in place until 31 March 2025 under the SDLT (Reduction) Bill.

First Time Buyers Stamp Duty Relief Increased

First time buyers will now no longer pay stamp duty on their first £425,000 increasing from £300,000. This remains in place until 31 March 2025 under the SDLT (Reduction) Bill.

R&D Tax Relief Reforms

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%. The government is continuing the review of R&D tax reliefs that was launched at Budget 2021 and will consult on the design of a single scheme

Planned AIA Reduction Abolished

The planned Annual Investment Allowance (AIA) reduction to £200,000 has been scrapped. The current allowance of £1,000,000 will remain in place permenantly.

Company Car Tax Rates

The government is setting rates for CCT until April 2028 to provide long term certainty for taxpayers and industry in Autumn Finance Bill 2022.

FYA - Electric Vehicle Charge Points

The government will extend the 100% First Year Allowance for electric vehicle chargepoints to 31‌‌‌ ‌‌March 2025 for Corporation Tax and 5‌‌‌ ‌‌April 2025 for Income Tax

Current VAT Registration Threshold Maintained

The current VAT registration threshold of £85,000 will remain in place until April 2026.

Inheritance Tax Nil Rate Band Maintained

The Inheritance Tax (IHT) nil-rate band and residence nil-rate bands will be fixed at their current rates until April 2028

Autumn Budget - November 2022