Keep up to date with the latest insights, news and views from the McKellens Masterclass. Subscribe below to receive regular updates delivered direct to your inbox.
What is the 2022/23 tax year looking like for you?
29 Oct 2021
With the Covid-19 virus continuing to affect our lives and with issues surrounding rising food and heating costs, the Universal Credit squeeze and labour shortages in certain sectors, up stepped the Chancellor the Exchequer to deliver his second Budget this calendar year, although this didn’t feel like a traditional budget……it was more of a spending review.
Certainly in the context of the forthcoming 2022/23 tax year and beyond, it is important to marry the Budget in March 2021 with the latest one to fully comprehend the effect on individuals and businesses going forward.
We have highlighted some of the more important points below but, for a more detailed analysis, you can download our Budget Update Guide by clicking the button below.
For those businesses investing in plant and machinery, the temporary 100% Annual Investment Allowance (AIA) of £1 million, was due to come to an end on 31 December 2021. This cut-off date has now been extended to 31 March 2023.
As was announced in the March Budget, the Corporation Tax (CT) rate will go up in April 2023, from 19% to 25%, for companies with profits exceeding £250,000. Companies with profits of £50,000 or less will continue to suffer CT at 19%. For those in-between there will, effectively, be a sliding scale.
If you operate within the retail, hospitality, and leisure sectors in England, there is a 50% business rates discount for the 2022-23 tax year, up to a maximum of £110,000.
The personal allowance for individuals will remain at £12,570 until April 2026. The same will apply to the basic rate band (in England and Northern Ireland). The Scottish and Welsh Parliaments will have the right to set their own.
The Inheritance Tax exemption of £325,000 and the Capital Gains Tax annual exemption of £12,300, will stay as they are until April 2026.
From 27 October 2021, if you make a taxable gain on the sale of a second residential property, you now have 60 days in which to complete a Capital Gains Tax Return and make the tax payment before penalties and interest kick in. Prior to this it was only 30 days.
For those on Universal Credit, who are working, from no later than 1 December 2021, you will be able to take home more of your hard earned cash as the taper percentage is being reduced from 66% to 55%.
There are lots of opportunities and issues to consider following this Budget for businesses, individuals and families. We are here ready to help. We believe it’s important to discuss all plans you are considering before taking any action and so if you would like to see how the two 2021 Budget changes might affect you, your family and your business, why not contact Dave Proctor on email@example.com or 0161 947 4888 who will arrange for us to have that conversation.
To download a copy of our Autumn Budget Update 2021, please click the download button below.
A guaranteed return on your investment,
or your money back!
We are so confident that becoming a member of the McKellens Masterclass will help you to grow your business and ultimately change your life, that we will guarantee a minimum 5x return on your 12 month membership investment or we will give you your money back.Join Now