Downing Street

Autumn Statement Summary 2022

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On 17th November, Chancellor Jeremy Hunt announced the Autumn Statement 2022, which was the third fiscal statement this year.

To help digest the main areas covered in the Autumn Statement, we have separated the significant points into those which have been frozen and those which have changed.

Freezes:

  • Basic rate of income tax to remain at 20% and additional rate at 45% for 2023/24
  • Most tax rate bands frozen at current levels until 5 April 2028
  • No changes announced to pension tax reliefs
  • Inheritance tax thresholds also frozen until 5 April 2028
  • VAT registration threshold frozen at £85,000 for two more years, to 31 March 2026

Changes:

  • 45% rate will apply to income above £125,140 in 2023/24
  • Dividend income and capital gains to be more heavily taxed from 2023/24
  • Corporation tax rate increase to 25% from 1 April 2023 restored
  • SME R&D Scheme rate changes to bring more in line with RDEC Relief
  • Business Rate changes and targeted reliefs announced for 2023/24

For further details on these key areas, and to view our full summary of the Autumn Statement 2022, click the link below to download our summary.

Liric-Autumn-Statement-Summary-2022Download

If you have any questions relating to any of the areas within the Autumn Statement, please contact us via our contact page.

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Liric Emergency Budget Summary 2022

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Last Friday Chancellor Kwasi Kwarteng set out an Emergency Budget for the UK, focused on growth. He outlined three priority areas: reforming the supply side of the economy, maintaining a responsible approach to public finances, and cutting taxes to boost growth. 

Kwarteng’s budget has been described as the biggest tax cutting budget for half a century. We have highlighted the significant points from the Chancellors budget below:

  • Reversal of the April 2022 increase in National Insurance rates with effect from 6 November 2022 
  • Cancellation of the Health and Social Care Levy that was to be introduced in April 2023 
  • Cancellation of the 1.25% addition to dividend tax rates that was introduced in April 2022, with effect from April 2023 
  • Basic income tax rate cut to 19% a year early, from April 2023 
  • Abolition of 45% rate of tax on incomes above £150,000 from April 2023 
  • Cancellation of planned corporation tax increase to 25% in April 2023: the rate will remain 19% 
  • Increases in thresholds for Stamp Duty Land Tax with immediate effect 
  • From April 2023, repeal of the ‘off-payroll working’ measures introduced in 2017 and 2021 
  • Confirmation of energy cost support packages

For further details on these key areas, along with a full summary of the Emergency Budget 22/23, click the link below to download our summary. 

If you have any questions relating to any of the areas within the Emergency Budget, please contact us .

 

Liric Emergency Budget Summary 2022

Autumn 2021 – Budget Report

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Yesterday the Chancellor Rishi Sunak presented his third Budget and set out plans to “build back better” – whilst there was not a lot of new information, our Budget Report summary recaps  the current tax rules and forthcoming changes.

Budget Newsletter – Autumn 2021

2021 Budget Review

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With the UK having been adversely affected by the coronavirus (COVID-19) pandemic, Chancellor Rishi Sunak presented the 2021 Budget against a backdrop of ongoing economic hardship.

Our Budget Summary (see the link at the bottom of the page) provides an overview of the key announcements arising from the Chancellor’s speech. Measures for businesses include the extension of the furlough scheme until September, a £5 billion restart grant fund as England comes out of lockdown and an increase in corporation tax scheduled for 2023. 

Meanwhile drivers will benefit from a freeze in fuel duty and homebuyers will welcome an extension of the stamp duty holiday.

Thankfully there are no immediate changes to VAT threshold, tax rate on dividend income or national insurance rates as had been feared. The increased corporation tax rate to 25% from April 2023 will potentially have an impact on how company profits are most tax-efficiently extracted and we will be looking at this further once more detailed information becomes available.

Additionally, throughout the Summary you will find informative comments to help you assess the effect that the proposed changes may have on you personally, as well as a handy 2021/22 Tax Calendar.  

Don’t forget, we can help to ensure that your accounts are accurate and fully compliant. We can also suggest strategies to minimise your tax liability and maximise your profitability.  

If you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor’s Budget speech, please do get in touch or call on 01763-853633

Please find our budget newsletter below:

Budget newsletter February 2021