In his Autumn Statement 2022 new Chancellor Jeremy Hunt set three priorities: Stability, growth and public services. Certainly the tax burden seems to be set for some time, a number of taxes until April 2028 which gives some stability, but with thresholds being held and reduced, more people are being drawn into the tax regime. The main announcements were as follows
Personal taxes
- Additional rate threshold at which 45% tax becomes payable reduced to £125,140
- Income tax, National Insurance and Inheritance tax thresholds frozen until April 2028
- Dividend allowance is reduced to £1,000 from April 2023 and £500 from April 2024, bringing more people within self assessment
- CGT Annual exempt amount is reduced to £6,000 from April 2023 and £3,000 from April 2024, also bringing more people within self assessment
Business taxes
- National Insurance secondary threshold from which employers NI is payable is maintained at £9,100 until April 2028
- VAT registration limit remains at £85,000 for 2 years from April 2024
- Reform of R&D to ensure public money is spent effectively and bet supports innovation
- Further targeted assistance to help with business rates over the next 5 years
- Introducing the OECD Pillar 2 rules so that global businesses will pay a minimum Corporation Tax rate of 15%, protecting the UK tax base from corporations using aggressive tax planning
- Businesses in the energy sector who are making extraordinary profits will pay an Energy Profits Levy of 35%, a 10% increase until April 2028 and a 45% Electricity Generators Levy of 45% on extraordinary returns made by electricity generators
Individuals
- The energy price guarantee will limit bills to £2,500 increasing to £3,000 from April 2023
- Vehicle excise duty will be introduced for electric cars, vans and motorcycles from April 2025 ensuring all motorists pay a fairer tax contribution
- For 2023/24 there will be a Cost of Living payment of £900, to households on means tested benefits, £300 to pensioner households and £150 to individuals on disability benefits
- Benefits including the State pension will rise in line with inflation from April 2023, an increase of over 10%
Unusually there were not leaks to the Autumn Statement 2022 as is common for Budgets. Areas which could be targeted such as entrepreneurs relief, alcohol and fuel duties had no mention. Further details will be released over the next few weeks, such as proposals on R&D, and you should seek professional advice before taking any steps based on these contents. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Shrewsbury, Shropshire – Accountants who “speak your language”