New tax year – changes which will affect you

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The 2022/23 tax year began on 6 April with a number of changes which will impact individuals and companies. We’ve listed out a few of the most important changes below:

  • Changes to ‘Making Tax Digital for VAT’: all VAT registered businesses should have signed up for MTD by 1 April 2022
  • Changes to dividend tax rates: the ‘basic rate’ dividend tax rate increased to 8.75%, the ‘higher rate’ dividend tax rate increased to 33.75%, and the ‘additional rate’ dividend tax rate increased to 39.35%
  • Changes to National Insurance rates: the employees’ NI rates increased from 12% to 13.25% and 2% to 3.25%, with the employer’s NI rate increasing from 13.8% to 14.05%. Similar increase apply to self-employed NI rates
  • Changes to state pension: the state pension increased by 3.1%
  • Changes to minimum wage: the National Living Wage increased to £9.50 per hour

To discuss any of these changes please call Ellis & Co Accountants on 01244 343 504.