A review of measures for UK individuals –Autumn Budget Breakdown 2022.

Income tax in brief: 

  • Personal allowance frozen at £12,570 until April 2028
  • Basic rate of income tax will remain at 20% indefinitely
  • Earnings between £12,571 and £50,270 will be taxed at 20%
  • Earnings between £50,271 and £125,139 will be taxed at 40%
  • Additional rate of 45% will be lowered form £150,000 to £125,140 from April 2023 

Dividends in brief:

The rates of taxation on dividend income will remain as follows:

  • The dividend ordinary rate – 8.75%
  • The dividend upper rate – 33.75%
  • The dividend additional rate – 39.35%.
  • As corporation tax due on directors’ overdrawn loan accounts is paid at the dividend upper rate, this will also remain at 33.75%.
  • The dividend allowance will reduce from £2,000 to £1,000 from April 2024

National Insurance in brief: 

The government has:

  • Reversed the temporary increase in NICs and
  • Cancelled the Health and Social Care Levy completely.

From the 6th November 2022:

Employees:

  • Primary Class 1 NICs (employees) generally reduced from 13.25% to 12% and 3.25% to 2%

Employers

  • Secondary Class 1 NICs (employers) reduced from 15.05% to 13.8%.

       Self-employed:

  • Class 2 fixed from April 2023 to April 2028 at £3.45 per week on profits over £6,725

Capital Gains tax

  • A reduction in capital gains annual exempt amount from £12,300 to £6,000 from April 2023.

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