Budget 2022
Imagine you are a peasant, living in the ‘olden days’ and there is a rumour going around that the King is about to announce that he will be cutting two fingers off everyone’s left hand. Then comes an announcement - the King will be cutting one finger off everyone’s left hand. “What a relief!” you cry, “the King has given me an extra finger!”.
That’s pretty much my reaction to the budget! It’s bad but not as bad as feared.
According to the official statistics, the UK is now officially in recession. The majority of the key tax-raising measures announced by the Chancellor in his Autumn Statement yesterday take effect from April 2023. The main revenue raising strategy is to freeze various tax allowances, in particular the Income Tax Personal Allowance. and the level at which higher tax rates apply. One exception to this being the decision to reduce the additional (upper) rate threshold next year means that more taxpayers will pay tax at the 45% rate, thus spreading some of the tax burden, as anticipated, to higher earners.
But it was a packed budget and as always, not everything that might affect you made the headlines. With the above in mind, our Budget summary can be downloaded by clicking on the link below. This really is essential reading so do take the time to have a browse.
BUDGET SUMMARY
It contains information on:
Freezing of tax rate bands.
Dividends and Capital Gains to be more heavily taxed
An update on IR35.
National Living Wage increases
BIG changes to the R&D Tax Credits rules
And much more!
We hope you find it interesting and if any of the items raise questions, do please get in touch.
Self- assessment Tax Returns 2021-22
The deadline for filing these is 31st January 2023 but please bear in mind that we have many hundreds of tax returns to prepare and must deal with these in the order we get information in from our clients. So if you can get your tax return information in to us soon, that would be appreciated - and you never know, you might be due a refund!
If you have any questions, on anything, don’t hesitate to contact us below: