Our Brief Summary

Budget 23 March 2022

BRIEF HIGHLIGHTS OF TAX AND NATIONAL INSURANCE CHANGES:

> Personal income tax allowance for 22/23 remains at £12,570;

> National Insurance threshold where employees start to pay NI increased to match income tax Personal allowance of £12,570 from 6th July 2022.

> No change to proposed 1.25% Health and Social Care Levy from April 2022 on income under Class 1 (Employee, Employer) and Class 4 (Self-Employed) National Insurance contributions.

> Employer Allowance increased by £1,000 to £5,000 from April 2022;

> No change to previously planned NLW increase for individuals aged 23 from £8.91 to £9.50 an hour with effect from April 2022;

> NMW rates to apply from April 2022:

21 to 22 year olds from £8.36 to £9.18 per hour
18 to 20 year olds from £6.56 to £6.83 per hour
16 to 17 year olds from £4.62 to £4.81 per hour;

> From April 2022 Dividend Tax rates increased by 1.25% points to:

8.75% for basic rate taxpayers
33.75% for higher rate taxpayers
39.35% for additional rate tax payers.

> Corporation tax rate planned increase to 25% to go ahead from 1 April 2023. Small profits rate for qualifying companies with no associated companies in the accounting period and profits of less than £50,000 will continue to pay at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by marginal relief providing a gradual increase in the effective CT rate;

> Super deduction of 130% remains available for Companies until 1 April 2023 for qualifying expenditure which is unused and not second hand;

> Fuel duty for petrol and diesel cut by 5p from 6pm 23 March 2022.