Since 1995, we’ve been providing A1 accountancy services to our clients, steered by our watertight values and principles.About
Whatever you’re searching for, our scope of industry knowledge and resources can help.
Jeremy Hunt’s long-awaited Autumn Statement, delayed from 31st October, looked to close a sizeable “black hole” in the country’s finances based around 3 priorities, stability, growth and public services. With lots of rumours circulating ahead of the budget, there were few surprises to come out of his recent announcement, however, we’ve pulled together the biggest statements:
As expected, the dividend tax free allowance threshold will be reduced from £2,000 to £1,000 from April 2023, however in a further step, this will be reduced further in 2024-25 to £500.
Also rumoured before the budget, the threshold for Capital Gains Tax will be reduced from £12,300 to £6,000 from April 2023. Similarly to the dividend allowance, a further reduction will be seen in 2024-25 to £3,000.
From April 2023, the threshold for the additional rate of income tax will be reduced from £150,000 to £125,140. Anyone earning above £125,140 will be taxed at the 45% from the next financial year.
No changes to the personal tax thresholds, which are to be maintained at the current level until April 2028. This also includes the National Insurance Contribution threshold.
Jeremy Hunt confirmed today that the Annual Investment Allowance will be permanently set at £1m to help promote growth.
Designed to help smaller companies with employment costs, today the Employment Allowance was confirmed to stay at £5,000 meaning that eligible employers can continue to benefit from a reduction in their Employer National Insurance bill.
As we already knew from Hunt back in October, Corporation Tax is due to increase to 25% in April 2023 if a company’s profits exceed £250,000. Companies whose profits are between £50,001 and £250,000 will be subject to a tapered relief. Companies whose profits fall below £50,000 will remain at 19%.
Are you confused by the budget? Speak to one of our accountants to understand how these updates could affect you.