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COMPETENT ACCOUNTANCY SOLUTIONS

Use our online accountancy to make tax easier. If you’re looking for a tailored accountancy service in London or the South East, contact S M O & Co today.

 

TAX RATES & ALLOWANCES

Our Tax Rate Centre includes a summary of the most important tax rates and allowances for the tax year 2022/2023.
It is not intended to cover every aspect of this year's tax figures and is designed to act as an overview only. No liability is accepted for any action taken or refrained from in consequence of its contents. Advice should always be sought from a professional. If viewing this page via a Mobile Phone, then you may wish to turn your phone to view in Landscape mode.

 

Income Tax

National Minimum Wage

Use the National Minimum Wage calculator to check if you’re paying a worker the National Minimum Wage or if you owe them payments from past years. The rates, below, apply from 1 April 2022.

National Insurance

Class 1 NICs: rates for employee (primary) contributions

Class 1 NICs: rates for employee (primary) contributions

NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL).

Class 1 NICs: Expenses & Benefits, Termination Awards and PSAs

Tax credits, Child Benefit and Guardian's Allowance

Statutory maternity, paternity and adoption pay

The same weekly Statutory Sick Pay rate applies to all employees. However, the amount you must actually pay an employee for each day they're off work due to illness (the daily rate) depends on the number of 'qualifying days' they work each week.

UK car tax  benefit rules : 2021-2025

The tables below shows future BIK tax bands (also known as company car tax) based on CO2 emissions of your vehicle.Car benefit is  calculated as a percentage of the list price of the car, on the day before it was first registered, plus certain accessories. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type. All rates will be frozen at the 2022/2023 for the next two years

For all cars, drivers must add 4% to their appropriate percentage if the car is propelled solely by diesel (up to a maximum of 37%). Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement.

To find out how much CO2 your company car emits, you may wish to do one of the following: check the cars V5 Registration Document; contact your Dealer; visit the Vehicle Certification Agency Website;.

Access the HMRC Car & Fuel Benefits Calculator.

Where an employer provides private fuel for the company car, the fuel benefit is calculated by using the relevant CO2 emissions percentage to a multiplier. The car fuel benefit multiplier rises by £700 from £24,600 to £25,300 from April 2022.

 

As part of the announcement HMRC has also confirmed that company car tax percentages will be frozen for three tax years from 2022/23 until 2024/25.

 

Please note that cars that are solely propelled by diesel attract a 4% supplement to the appropriate percentage according to the CO2 emissions. This is subject to a maximum percentage of 37%.

Amount per mile – 4 pence. Electricity is not a fuel for car fuel benefit purposes.

The taxable benefit for the unrestricted use of company vans is £3,600 (with no reduction for older vans) plus a further £688 of taxable benefit if fuel is provided by the employer for private travel.

5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less, or nothing at all.

The Basic State Pension applies if you are;

  •  a man born before 6 April 1951

  •  a woman born before 6 April 1953

The basic State Pension is a regular payment from the government that you can get if you reached State Pension age before 6 April 2016. To get it, you must have paid or been credited with National Insurance contributions. The most you can currently get is £141.85 per week. The basic State Pension increases every year by whichever is the highest of the following:

  •  earnings - the average percentage growth in wages (in Great Britain)

  •  prices - the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
    2.5%

You’ll be able to claim the new State Pension if you’re:

  • a man born on or after 6 April 1951

  • a woman born on or after 6 April 1953

If you reached State Pension age before 6 April 2016, you’ll get the State Pension under the old rules instead. The earliest you can get the new State Pension is when you reach State Pension age. The most you can currently get is £179.60 per week.

You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension. They don’t have to be 10 qualifying years in a row.

This means for 10 years at least one or more of the following applied to you:

  • you were working and paid National Insurance contributions

  • you were getting National Insurance credits for example if you were unemployed, ill or a parent or carer

  • you were paying voluntary National Insurance contributions

If you’ve lived or worked abroad you might still be able to get some new State Pension.

You might also qualify if you’ve paid married women’s or widow’s reduced rate contributions.

You don’t have to stop working when you reach State Pension age but you’ll no longer have to pay National Insurance. You can also request flexible working arrangements.

A Allowance of 130% for companies on cost of most new plant and machinery that ordinarily qualifies for 18% main rate writing down allowances until 31 March 2023.
B Allowance of 50% for companies on cost of most new plant and machinery that ordinarily qualifies for 6% special rate writing down allowances until 31 March 2023.
C Maximum annual investment allowance £1m pa to 31 March 2023 (£200,000 pa from 1 April 2023).
Reducing balance.
D Available for: research and development (no time limit); enterprise zone (assisted areas) until designated dates between 31 March 2021 and 16 March 2024; brand new low emission cars and gas refuelling stations until 31 March 2025; zero-emission goods vehicles until 31 March 2025/5 April 2025; and electric vehicle charge points until 31 March 2023/5 April 2023.
E Available on qualifying assets brought into use on or after the date the relevant freeport tax site is designated and before 30 September 2026.
F New and unused cars only. Allowances for second hand cars are 18% reducing balance.
G Expenditure on non residential structures and buildings on construction contracts entered into on or after 29 October 2018. 
H Available for structures and buildings in freeport tax sites for contracts entered into on or after the freeport is designated.

A Additional (enhanced) tax deduction available for qualifying R&D expenditure.
B Payable R&D tax credit in any tax year in excess of £20,000 is restricted to three times the total relevant PAYE income tax and NICs liability for the year.
C Taxable credit available on qualifying R&D expenditure

A Eligible expenditure qualifies for enhanced deductions. Rates quoted refer to payable tax credits for any resulting surrenderable losses.
B 2022/23 rates apply for expenditure between 27 October 2021 and 31 March 2023. Above rates scheduled to reduce to 35% for 2023/24 and to 25% for 2024/25, other than museums and galleries exhibition tax relief, which is currently due to end on 31 March 2024.
C Payable credits reduced by 5% for non-touring productions in all tax years.

The 5% rate applies to the 30 September 2021 and the 12.5% rate applies from 1 October 2021 to 31 March 2022.

All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then reduced:

* Unquoted companies include those listed on AIM

  • Most transfers between spouses and civil partners.

  •  The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.

  •  Gifts of up to but not exceeding £250 p.a. to any number of persons.

  •  Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person.

  •  Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.

  •  Gifts to charities, whether made during lifetime or on death.

  • From April 2012, a reduced rate of IHT of 36% will be introduced where 10 per cent of more of the net estate is left to charity.

The ATED charges increase automatically each year in line with inflation (based on the previous September’s Consumer Prices Index (CPI)).

The ATED annual charges will rise by 0.5% from 1 April 2022 in line with the September 2021 Consumer Prices Index. A TIIN has not been published for this measure, as it is a routine legislative change.

The table below shows the property band and what the revised charges will be for the 2022 to 2023 chargeable period.

Expenses & Benefits (employers form)

P11db

Return of class 1a national insurance contributions due

P46: Car  https://www.gov.uk/guidance/report-end-of-year-expenses-and-benefits-online

  • Companies House forms for limited companies

  • Companies House forms for limited liability partnerships

  • Companies House forms for limited partnerships

  • Forms for other company legislation and registration acts

  • Companies House forms for insolvency

  • Bilingual forms (English/Welsh) for limited companies and limited liability partnerships

 
 

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