Autumn 2022 Budget Update
Wed Nov 23 2022
- The threshold at which workers start paying National Insurance contributions (NICs) was raised from £9,880 to £12,570.
- The NICs Secondary Threshold for employers at £9,100 until April 2028.
- Further to this, The government will decrease the additional rate threshold from £150,000 to £125,140 from 6 April 2023.
- Corporation Tax main rate for non-ring fenced profits will be increased to 25% applying to profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay Corporation Tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.
- The VAT registration threshold at £85,000 for two years from April 2024.
- Annual Investment Allowance is fixed at £1million from 1 April 2023.
- The CGT annual exempt amount, currently £12,300, will be reduced to £6,000 for the 2023/4 tax year and a further fall to £3,000 from April 2024.