Income Tax

▪Personal Allowance £12,570 to be frozen until 2028.

▪ Higher rate threshold £50,270 to be frozen until 2028.

▪ The threshold for the top rate of Income Tax 45% will be reduced from 150k to £125,140.

▪ Tax free allowance on dividends will fall from 2k to 1k in 23/24, and £500 in 24/25.

Corporation & Business Tax

▪ Corporation tax rate will increased to 25% and remain till at that rate till 2028.

▪ The 19% rate for companies with profit below 50k will be retained.

▪ Profit between 50k & 250k will be @ 26.5% marginal rate.

▪ 100% write-down of cost of Plant & Machinery (main rate) from 1 Apr 23 – 31 Mar 26, For special rate will be 50%.

Capital Gains Tax & Inheritance Tax

▪ CGT annual exemption to fall to 6k from 6 Apr 23 and to 3k from 6 Apr 24.

▪ IHT, nil rate band to remain at 325k until 2028.

Tax Fraud

▪ Will be subject to a maximum sentence of 14 years instead of 7 years.

UK Economy

▪ Inflation is expected to fall from 10.7% to 2.9% by 31 Dec 23.

▪ The UK will be clear from the recession by the end of 2023 and growth figures forecasted.

▪ Growth of 1.8% is predicted for next year, with 2.5% in 2025 & 2.1% in 2026.

▪ The GOV has frozen it’s 5p fuel duty cut.

Energy Price Guarantee

▪ Energy bill cap for households will be maintained at an average of £2,500 per year until 30 Jun 23, GOV support will continue for another 3 months.

Deadline

– Mar 31: Deadline for Corporation Tax returns due for accounting periods ended Jun 30, 2022.

– Mar 7: VAT returns and payments due for Accounting Quarter period ending Jan 31.

– Apr 5: End of the self employment & self assessment financial year 2022/23.

– Apr 6: Start of the self employed & self assessment new financial year 2023/24.

Disclaimer

Any information provided by us it’s valid for that day only, as the GOV. changing the rules constantly, kindly seek our advice for new updates.