Further to the chancellor Jeremy Hunt’s announcements in the Autumn Statement earlier today, we have detailed below some key changes coming into effect;
Personal Tax
- The additional rate tax threshold of 45% will be reduced for those who earn over £150,000pa to £125,140pa in line with the personal allowance limits. Those earning £150,000 will pay an additional £1,243pa.
- The income tax personal allowance threshold will be frozen until 2028. So as wages rise, the proportion of earnings that are taxable will increase.
- The tax-free dividend allowance will be cut from £2,000pa to £1,000pa from April 2023 and then to £500pa from April 2024.
- The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 from April 2023 and then to £3,000 from April 2024.
- Electric vehicles will no longer be exempt from vehicle excise duty from April 2025.
National Insurance
- The Employers NIC threshold will be frozen until April 2028, and the employment allowance will be kept at its current level of £5,000pa.
- The main national insurance and inheritance tax thresholds will be frozen for a further two years until April 2028.
Business Tax
- The current VAT threshold of £85,000 will be frozen until March 2026.
- The national living wage will increase from April 2023 by 9.7%, pushing the hourly rate from £9.50 to £10.42 from April 2023.
- The windfall tax targeting the profits of energy companies is being extended. From January 1 st, 2023, until March 2028, the energy profits levy will rise from 25% to 35%. A new ‘temporary’ 45% tax on companies that generate electricity will be applied from January 2023.
Autumn Statement Other Key Points
- The cap on energy bills will continue for a further 12 months but will rise from £2,500 to £3,000 from April 2023. Without this help, average bills would have gone up to about £3,740, according to analyst estimates.
- Means-tested benefits, including Universal Credit, along with the state pension, will rise in line with inflation by 10.1% from April 2023.
- The government is giving local authorities in England additional flexibility in setting council tax by increasing the referendum limit for council tax to 3% per year from April 2023, along with increases to the adult social care precept by up to 2% per year.
- The office for budget responsibility judges the UK to be in recession, meaning the economy has slowed for two quarters in a row. However, it predicts overall growth for this year to be 4.2%, but the size of the economy will shrink by 1.4% in 2023.
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2023-08-01
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2023-06-20
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2023-05-10
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2022-10-11
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Dedicated Contact
Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.
Tax Efficient
Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.
Quick Turnaround
We aim to turn around the annual accounts and tax returns quickly to give you visibility of your tax bill well in advance of it being due.
