Budget Summary and Tax Update
Who would want to be the Chancellor at the moment? With pandemics, energy price rises, inflation rising and events in Ukraine disrupting the world’s economy, it’s hard to think of any good news he could build on. Rishi Sunak’s Spring statement contained many more tax changes than might have been expected.
Our handy year Spring Statement summary can be down-loaded by clicking on the link below.
SPRING STATEMENT
It contains information on:
Dividend tax rises
National Insurance threshold changes
Reform of basis periods - important for the Self Employed
More on Corporation Tax increases planned for April 2023
Making Tax Digital for VAT
And much more!
We hope you find it interesting and if any of the items raise questions, do please get in touch.
HMRC Late Payment Interest rates
The rate charged by HMRC on tax paid late is being increased from 3% to 3.25% from 5th April 2022. The rate of interest paid on repayments remains at just 0.5%.
It’s more than possible that the rate charged will increase later in the year so if you can pay off tax you owe, you should try to do so.
TAX FREEDOM DAY
This is a somewhat artificial measure which the Adam Smith Institute publish every year. If the average person had to pay all their tax upfront, how long would it be in the year before their tax bill was paid and they could keep what they earned after that? In 2021 that date was May 31st - the latest it has ever been since reliable records began in 1995 and nearly a month later than it was in 1996 when it was May 1st.
Anyone want to guess what it might be in 2022?
If you have any questions, on anything, don’t hesitate to contact us below: