News

Spring Budget 2023

Income Tax

The personal allowance will remain at £12570 in 2023/24 and remain at this level until 5 April 2028.  The higher rate and additional rate tax thresholds will also reamin at £37700 and £150000 respectively.

The tax on dividends will be 8.75% on amounts received above £1000 and this exempt amount will be further reduced to £500 from 6 April 2024.

National Insurance

Employee National Insurance threshold to be set at £242 per week from 6 April 2023 to match the tax personal allowance.  Employer rate to be £175 per week.

VAT

The standard rate will remain at 20%.  The turnover threshold for VAT registration is £85000 and the threshold for VAT registered businesses wishing to cancel their registration is £83000.  These amounts to remain in force until 31 March 2024.

Corporation Tax

The Corporation Tax rate (19%) will remain the same for companies with profits up to £50000pa.  The headline rate will increase to 25% for businesses with profits of £250000pa or more.  Companies with profits falling between these two mounts will pay tax at the headline rate, but reduced by a marginal relief providing a gradual increase in the effective rate.