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.