On 17 November 2022, the Chancellor delivered his Autumn Statement. Our clients should have by now received a copy of our Autumn Statement summary document.
Here are some of the key points:
- The National Living Wage for people aged over 23 will rise to £10.42 per hour from 1 April 2023. The apprentice rate increases to £5.28 per hour.
- Benefits, including the state pension, will increase by 10.1%, in line with inflation from April 2023. The benefit cap will also rise in line with inflation.
- Income tax personal allowance is fixed at the current level until April 2028
- National Insurance and Inheritance tax thresholds have also been frozen until April 2028
- The basic rate of income tax will remain at 20%
- The 45% additional rate of income tax will apply to income above £125,140
- Tax-free allowances for dividends reduced to £1,000 next year and to £500 in 2024
- Capital gains tax annual exempt amount reduced to £6,000 from April 2023 and to £3,000 in 2024
- Corporation tax will increase to 25% for companies with profits above £250,000 and 19% for companies with profits below £50,000.
- Tax on dividend income will remain unchanged, as will corporation tax on directors’ overdrawn loan accounts
- VAT registration and deregistration thresholds will remain unchanged until April 2026
- 100% first year allowance for electric vehicle charge points extended to March 2025 for corporation tax
- Tax on company car benefits to be set until April 2028. In addition, car and van fuel benefits and the van benefit charge will increase in line with inflation.
- Household energy price cap extended for one year beyond April, with bills capped at £3,000 instead of £2,500
- Households on means-tested benefits will receive an additional £900 cost of living payment
- Pensioner households will receive an extra payment of £300 and individuals on disability benefits will receive an additional £150
- The Energy Profits Levy for oil and gas firms increased to 35% and extended until March 2028 and a new 45% tax on profits made by companies that generate electricity
- From April 2025 electric cars, vans and motorcycles will begin to pay Vehicle Excise Duty