Autumn Budget - November 2022
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.
The tax free Dividend Allowance will be reduced from £2,000 to £1,000 from April 2023, and to £500 from April 2024
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.