A comprehensive summary of the measures announced by newly appointed Chancellor Jeremy Hunt for the Autumn Statement 2022 speech on 17th November 2022, after being delayed from 31st October 2022.
Find out how the measures will affect you and your business.
Some of the biggest announcements covered are:
Individuals
- Basic rate income tax remains at 20%.
- National Insurance increase has been scrapped and will remain at their current level for the next two years.
- The personal allowance threshold will remain frozen until 2028.
- Additional- rate tax threshold has been lowered from £150,00.00 a year to £125,140.00 as of 6th April 2023, meaning more taxpayers will now find themselves paying 45%.
- Cuts to the Capital Gains Tax Allowance for the next two years, the original allowance was £12,300.00 will be reduced to £6,000.00 for the tax year 2023/24 and then £3,000.00 in 2024/25.
- National minimum wage for those aged 23 and over risen to £10.42 per hour.
- Inheritance tax nil-rate is currently £325,000.00 until April 2026 and will remain at this rate for additional two years until April 2028.
- Dividend Tax Threshold will be lowered from £2,00.00 to £1,00.00 from April 2023 and then again to £500.00 for the following year April 2024.
- Electric Vehicles will no longer be exempt from vehicle excise duty; electric vehicles now have to pay car tax from April 2025.
- Stamp duty cuts remain until 2025; remain unchanged from the mini-budget to raise the threshold at which stamp duty land tax is paid from £125,00.00 to £250,00.00.
Business
- Corporation Tax rises to 25% from 1 April 2023, the full 25% rate will apply to profits of £250,000.00 and over, those companies with profits up to £50,000.00 will continue to pay at 19%.
- IR35 reforms to stay the same.
- Bankers bonus cap abolished, One of the mini-budget measures left untouched by Hunt was the decision to lift the cap on bankers 'bonuses, which currently stands at 100% of a banker’s annual salary.
- Alcohol duty Freeze cancelled; the £600 million alcohol duty freeze has been cancelled.
- VAT- free shopping scheme cancelled; the scheme to remove VAT for tourists on UK products has been scrapped.
- Employment allowance will remain at its current level of £5,000.00.
- Business Rates - the business rates revaluation will still take place in April 2023,
- Windfall Tax - The current energy profits levy will be extended until March 2028, as well as increasing its rate from 25% to 35% from 1 January 2023.
- Annual Investments Allowances permanently set the at £1 million for businesses from April 2023.
- R&D Relief - the additional deduction for SME R&D relief will decrease from 130% to 86%, and the SME credit rate will decrease from 14.5% to 10%. Meanwhile, the research and development expenditure credit(RDEC) rate will increase from 13% to 20%.
- The Government has decided not to introduce a proposed online sales tax.
- The VAT registration and deregistration threshold will remain at the current level of £85,000.00 and £83,000.00 until 1 April 2026.
If you have any questions on how any area covered affects you or your business please don't hesitate to get in touch!
