Autumn Statement rumours flurry

15 November 2022

As with any budget or fiscal statement rumours and speculation grow in the days beforehand. The CIPP has noticed these too and wanted to explore what these could mean for the payroll profession.

On 17 November 2022, we’ll be pushing out updates throughout the day as we get access to the information delivered by chancellor, Jeremy Hunt. Keep an eye on our news page to get all the latest updates.

 

Changes to tax rates

With the additional rate on income tax being dropped and reinstated in the space of a month, it’s now rumoured to be increased back up to 50%. This would set it back to the rate last seen in tax year 2012/13. Changes to income tax rates are relatively easy to implement, when sufficient notice is given, but may come with additional queries and concerns from those affected.

 

Changes to tax band thresholds

It’s also been rumoured the additional rate tax threshold will reduce to to £125,000, bringing more taxpayers into this band. The impact remains the same but will dramatically increase the number of affected individuals.

 

Pensions tax relief

A sensitive subject with potential to raise substantial revenue for the Exchequer, but unpalatable to many, is the topic of pensions and the associated tax relief. The total relief available of up to 100% of a worker’s annual earnings may be reduced. Another potential target is the pensions lifetime allowance, reducing the amount of pension that can be invested before taxes become payable.

The impact of these changes is hard to assess without additional detail, which of course we don’t have yet, as, at this stage, this is all still hearsay.

 

State pension

The state pension triple lock has been widely discussed and suggested as an area for change. The triple lock guarantees that state pension payments rise in line with the highest of average earnings, consumer price inflation or 2.5%.

This was suspended last year, and a double lock implemented, amid soaring inflation. May another similar year or a total revision be on the cards?

 

Whatever happens on 17 November 2022, the CIPP will be here to keep you informed and up to date with the facts.


Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.