Here is a round up of new tax rates and thresholds coming through in Apr 2022.

Income Tax

All thresholds remain the same in 2022-23 tax year. The Personal Allowance remains at £12,570, Higher Rate tax starts on income above £50,270 and the limit for the Personal Allowance remains at £100,000.

Dividend Tax

Dividend tax in 2022-23 increases from 7.5% at Basic Rate to 8.75% and from 32.5% to 33.75% for Higher Rate taxpayers. At Additional Rate the rise is from 38.1% to 39.35%.

NAtional Insurance

Employers National Insurance

From April Employer Contributions increase to 15.05% a rise of 1.25% for wages over the Secondary Threshold of £758/month.

However what is better news for employers is that the Employment Allowance increases by £1k to £5k in 2022-23 Tax Year.

Employee National Insurance

Employee Contributions also rise by 1.8% from 12% to 13.25% for earnings above the Primary Threshold. From April to Jun the Primary Threshold is set at 823/month but rises to £1,048/month from July.

Self Employed National Insurance

National Insurance on Sole Trader and Partnership profits are also increasing from 9% to 10.25% in basic rate band and 2% to 3.25% in the higher rate band.

Basic Rate NI is payable on earnings above £823 from Apr to Jun and on earnings above £12,570 from July.

Capital Gains Tax

The 30 day rule for reporting Capital Gains on selling property has been extended to 60 days. The Annual Exemption remains at £12,300. Rates remain the same at 10% Basic Rate and 20% Higher Rate.

Corporation Tax

Corporation Tax remains unchanged at 19% in 2022-23 Tax Year.

Annual Investment Allowance remains at £1million to March 2023.

VAT

The reduced 12.5% rate of VAT for hospitality ends 31st March reverting to 20% in April.

On the other hand VAT on energy-saving equipment and materials have been cut from 5% to 0%.

BUSINESS RATEs

There is a 50% business rates discount for the retail, hospitality and leisure sectors up to a maximum of £110,000 in the new Tax Year.

Minimum Wage

The minimum wage increased fro April 2022 to £9.50/hour.