September 2022 Newsletter
Released On 3rd Oct 2022
Hi, and welcome to our monthly newsletter. We hope you have had a great September. We've had another busy month here at Wessex Commercial Solutions and hope that you find vale in the information below.
National Insurance 1.25% increase reversed
The 1.25% increase in National Insurance (NICs) rates that was introduced in April 2022, will be reversed from 6 November 2022.
Income Tax Rate Reductions
The planned reduction in Income Tax Basic Rate from 20% to 19% which was due to take place in April 2024, will now be brought forward to April 2023.
The 1.25% extra tax on dividends still applies for the current tax year to 5th April 2023, but not for future years thereafter.
Chancellor Kwasi Kwarteng U-turns on Scrapping 45p Tax Rate
The government has performed a dramatic U-turn on the plan to cut income tax for people earning more than £150,000 at a time when millions of people are seeing their family finances squeezed.
Corporation Tax stays at 19% The planned increase in Corporation Tax from April 2023 to 25% is no longer happening and will remain at 19%.
Confirmation on the Annual Investment Allowance
Currently set at £1m, this was due to be reduced to £200,000 in April 2023. The £1m level has now been made permanent, though remember it pays to incur any capital expenditure on or before your year end, to be able to set against company profits.
Claim Employment Allowance
Have you thought about claiming employment allowance to reduce your NIC contribution?
At the moment, the allowance is £5,000 (moved up from £3,000 in 2018-19) and only available to business owners who employer NIC liabilities of under £100,000 in the previous tax year.
If you want to find out more and if this applies to you, contact us on 01935 385929
