Posted November 18, 2022

2022 Autumn Statement

The fourth Chancellor of 2022 (Jeremy Hunt) announced his Autumn Statement, this will be accompanied by a Finance Act and so everything outlined below should be passed into law.  I have prepared a summary of the main issues that will impact our clients, there were other matters that were announced and a full transcript of the budget can be found here: The Autumn Statement 2022 speech – GOV.UK (www.gov.uk)

Personal Tax

The threshold at which tax payers pay the additional 45% rate of income tax will be reduced from £150,000 to £125,140 from 2023/24 tax year.

The current income tax personal allowance (£12,570), higher rate threshold (£50,270), main national insurance thresholds and inheritance tax threshold will be frozen at their current levels until April 2028.

The current dividend 0% allowance of £2,000 will be reduced to £1,000 for 2023/24 and £500 from 2024/25.

The annual exemption for capital gains tax will be reduced from £12,300 to £6,000 for 2023/24 and £3,000 from 2024/25.

The stamp duty reduction announced by the previous Chancellor in his mini budget will remain in place until 31/03/2025 to support the housing market.

Electric Vehicles

From April 2025 electric vehicles will no longer be exempt from Vehicle Excise Duty.

The Benefit in Kind rates for company provided electric vehicles will increase 1% a year for three years from 2025.

Business Taxes

The threshold for Employers NIC will remain at its current level until April 2028, the employment allowance will also remain at £5,000.

The threshold for VAT registration will remain at its current level until March 2026.

The deduction rate for the SME R&D tax credit scheme will be cut to 86% and the credit rate to 10%, but the rate of the separate R&D expenditure credit will increase from 13% to 20%.

The revaluation of business rates that is currently taking place will continue and the new rates will begin in April 2023, but a new Transitional Relief scheme will be brought in to smooth the increase for businesses.

Minimum Wage Increases

Below are the new minimum wage increases for staff to be implemented from 1/4/2023.  If we run your payroll, the payroll team will be in touch with you in February to confirm your staff wages for the new tax year.

If you have any queries about the budget or would like further information, please do not hesitate to contact one of the Whitesides team.