Publications & Financial Updates
Check back here regularly to find out what's going on at our company and in the financial environment.
News Item - October 2022
A brief summary of the Chancellor's Autumn Statement on (to be announced) 2022:
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Income Tax, National Insurance and I.H.T. - The starting point at which the 45% rate of income tax applies will be reduced from £150,000 to £125,140.
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The allowances and bands for income tax, national insurance and inheritance tax will remain frozen until April 2028.
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Employers NIC thresholds to remain frozen.
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Dividend Allowance - to be reduced from £2,000 to £1,000 from April 2023; then down to £500 from April 2024.
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Capital Gains Tax Annual Exemption Amount - to be reduced from £12,300 to £6,000 from April 2023; then to £3,000 from April 2024.
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Research and Development - for expenditure from 1st April 2023 the R.D.E.C. rate will increase from 13% to 20%. The SME additional deduction will reduce from 130% to 86%; the SME credit will decrease from 14.5% to 10%.
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Business Rates - The planned revaluation of properties will go ahead. However, the additional support will mean that 2/3rds of businesses will not pay higher rates in 2023. This support includes the Multiplier Freeze, the Transitional Relief Schemes, the Retail Hospitality and Leisure Relief and the Supporting Small Businesses Scheme.
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V.A.T. - the registration threshold to remain at £85,000. The Government will not now be pursuing the Online Sales Tax.
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National Living Wage - raised to £10.42 per hour from 1st April 2023.
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Windfall Tax - affecting the oil and gas industry, to increase fro 25% to 35%; an electricity generator tax to be set at 45%.
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Inflation Forecasts - the O.B.R. forecasts C.P.I to hit 9.1% in 2022 and 7.4% in 2023.
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Energy Price Guarantee - the price cap will increase from April 2023 to bring the average cost of energy for a typical house to £3,000 per annum.
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Benefits and Welfare - in line with the "triple-lock", to increase by 10.1% in 2023.
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Pensions - the "triple-lock" to be protected. Pension Credit to increase by 10.1% in 2023.
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Please note that the above report is only our brief interpretation and understanding of the Government's budget proposals for the 2022 Autumn Statement, delivered to Parliament by Jeremy Hunt on Wednesday 17th November 2022. These provisions are normally confirmed upon the receipt of Royal Assent later in the year. Jonathan Davis and his associates can not be held responsible for any errors, omissions or changes to the above.
News Item - March 2022
A brief summary of the Chancellor's Spring Statement on Wednesday 23rd March 2022:
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From July, there will be an increase in the National Insurance threshold by £3,000 - thereby aligning both the Primary Threshold and Lower Profits Limit with the income tax personal allowance at £12,570. However, for some earners, the change will cancel out the NICs surcharge that will come into effect this April. On the 6th July 2022, Employees’ class 1 NICs will increase, which unusally starts mid-way through the year. On that date, employees will now be paying class 1 NICs at 13.25% on earnings between the lower earnings limit and the primary threshold.
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To help alleviate the extra NI charge, there is a planned 1% cut in income tax, though not until 2024; reducing the basic rate of income tax down from 20% to 19%. It is expected that this will reduce tax for over 30 million workers, pensioners and savers, resulting in the average taxpayer being £175 better off a year. It will be the first cut to the basic rate of income tax in 16 years – and perhaps cynics will point out it comes into play just before the next general election, due to be held that year.
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The chancellor announced a cut to fuel tax by 5p per litre, effective immeditaely, until March 2023. This reduction, is calculated to represent a £5 billion saving; or in basic terms, £100 for the average car driver, £200 for the average van driver, and £1,500 for the average haulier. Rather predictably, this "saving" had very little affect on garage forecourts.
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There is a "green" tax cut, with the VAT 5% rate on energy saving materials cut to zero – including energy saving insulation and solar panels – to run for the next five years. It also permanently brings both wind and water turbines back into scope of the relief.
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Please note that the above report is only our brief interpretation and understanding of the Government's budget proposals for the 2022 Spring Statement, delivered to Parliament by Rishi Sunak on Wednesday 23rd March 2022. These provisions are normally confirmed upon the receipt of Royal Assent later in the year. Jonathan Davis and his associates can not be held responsible for any errors, omissions or changes to the above.
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