Here’s a summary of the Autumn Statement 2022.
You start to pay income tax on annual earnings of more than £12,570, charged at 20%. You then pay 40% on earnings over £50,270 a year (the bands are different in Scotland). These tax thresholds had already been frozen until 2026. The chancellor has now extended that freeze for a further two years.
The highest rate of income tax, is currently at 45% on earnings above £150,000. The chancellor announced today that this will now be paid on earnings of more than £125,140 from April 2023.
The threshold at which people start to pay inheritance tax will also be frozen. The annual allowance before capital gains tax is aid will be reduced from £12.300 to £6,000 in April and then to £3,000 a year later. This tax is paid when you sell an asset, such as company shares or a second property.
Business Rates Support
The chancellor announced a £13.6 billion package of support for business rates payer in England. To protect businesses from rising inflation, the multiplier will be frozen in 2023/2024. Relief for business int he retails, hospitality and leisure sectors were increased from 50% to 75% for 2023.
National Living Wage
The minimum pay rate for those 23 years old and over, the National Living Wage is £9.50 per hour. This will rise to £10.42 in April. This will affect around 2 million people and the employers must shoulder the cost.
National Insurance Contributions
The employers National Insurance Contributions threshold is frozen until April 2028. The Employment Allowance will be retained at it new, higher level of £5,000 until March 2026.
If you are concerned or need further help/advice about how the points in the Autumn Budget 2022 may affect you and your business give us a call/email.
For further information on the budget head to the gov.UK website.