Hot on the heels of the last mini-budget came the new Chancellor of the Exchequer, Jeremy Hunt, with his Autumn Statement on 17 November. Among his announcements, employers may find the following of interest:
The additional rate threshold for income tax will decrease from 6 April 2023 from £150,000 to £125,140
Personal tax allowance
Currently £12,570 and frozen until April 2026, this has been extended to April 2028
National Insurance contributions will remain frozen until April 2028.
The Statutory National Living Wage will increase from 1 April 2023 for those aged 23 and over by 9.7% to £10.42.
New minimum wage to apply from 1 April 2023:
21-22 year olds £10.18 (+10.9%)
18-20 year olds £7.49 (+9.7%)
16-17 year olds £5.28 (+9.7%)
Apprentices £5.28 an hour (+9.7%)
Accommodation offset £9.10 (4.6%)
The tax-free allowance on dividend income has been cut from April 2023 (£2,000 to £1,000) and then from April 2024 to £500.
For EV company cars, the Benefit in Kind rate increases to 3% for the 2025-26 tax year, 4% for 2026-27 and 5% for 2027-28. All non EVs see the same 1% increase per annum over the same timescale.
The current £85,000 threshold (and deregistration threshold of £83,000) will be retained until 31 March 2026 (rather than 2024 as previously announced).
The Energy Bill Relief Scheme (EBRS) for businesses will be published by the government by 31 December 2022.
Posted on 11/30/2022 by Ortolan