How much income can you receive before paying tax?
- 2021/22 – £12,570
- 2022/23 – £12,570
- this allowance level will be frozen until April 2026
- you start to lose this allowance when annual income exceeds £100,000
How much income can you receive before paying higher rate tax (40%)?
- 2021/22 – £50,270
- 2022/23 – £50,270
- this threshold will be frozen until April 2026
Tax on Dividends
- You can receive £2,000 of dividends in a tax year before paying tax
- from 6th April 2022 tax rates on dividends will increase..
- Basic rate taxpayers will pay 8.75% ( up from 7.5%)
- Higher rate taxpayers will pay 33.75% ( up from 32.5%)
- Additional rate taxpayers will pay 39.35% (up from 38.1%)
ISA contribution limits
- The annual ISA limit will be £20,000 for 2022/23 (currently £20,000)
- The Junior ISA annual limit will be £9,000 in 2022/23 (currently £9,000)
Capital Gains Tax (CGT)
- The Annual Tax Exempt Amount of CGT for individuals will be £12,300 for the 2022/23 tax year (currently £12,300).
- this annual allowance will be frozen until April 2026
Inheritance Tax (IHT)
- The Inheritance Tax nil-rate band will remain at £325,000 per person until April 2026
- The residence nil-rate band will remain at £175,000 until April 2026.
- The residence nil-rate band taper will continue to start at £2 million.
Pensions
- The Lifetime Allowance for pensions is £1,073,100 in 2022/23. This level will be frozen until April 2026
- The Annual Allowance for pensions remains at £40,000 in 2022/23. (see below)
- The “Threshold Income”, before annual pension allowance starts to reduce stands at £200,000. “Adjusted Income” stands at £240,000. The highest possible annual allowance reduction is down to £4,000.
National Insurance Contributions (NICS)
- From April 2022 NICS will increase by 1.25% for working age employees, employers and the self employed
- from April 2023 this increase will be separated out from NICS, re-named the Health and Social Care levy and will also apply to working people above retirement age.
Corporation Tax
- Corporation tax on company profits above £250,000 is due to rise from 19% to 25% from April 2023. Companies with profits below £50,000 will remain at 19% and there will be a tapered rise in tax level for profits between £50,000 and £250,000
Business VAT registration
- Turnover limit of £85,000 before VAT registration is required
This blog is intended as information only and does not constitute advice in any way. The information contained herein could be wrong or may have changed by the time you read it so should not be relied upon in any way.