Autumn statement tax changes
17 November 2022
While the autumn statement might not have been as full of thrills for the payroll profession as the ‘mini-budget’, there are still things we need to be aware of.
The big announcement for tax was the reduction of the additional rate earnings threshold. This is to be reduced from £150,000 to £125,140 from 6 April 2023. This did not come as a shock to many as it was heavily rumoured prior to the statement.
Along with this, all other thresholds and rates will be frozen until 2028, a further two years on previous plans. This is on top of the indefinite delay to the basic rate of tax reduction that was scrapped as part of the growth plan roll back.
In addition, dividend allowance will be reducing from £2,000 to £1,000 next year. This will half again in April 2024 to £500. Similarly, the tax-free allowances for capital gains tax will reduce from £12,300 this year to £6,000 in 2023/24 and £3,000 in 2024/25.
The full autumn statement documentation can be found here.
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