2022 Autumn Statement Highlights

Treasury Chancellor Jeremy Hunt has announced his 2022 Autumn Statement. Here is the summary of the key changes in the Budget: 

• Personal Allowance will be frozen at £12,570 in fiscal year 2023/24.
• The additional rate Threshold will decrease from £150,000 to £125,140.
• The dividend allowance will reduce from £2,000 to £1,000 in 23/24. From 6 April 2024 it will reduce further to £500.
• From 1 April 2023 the main rate of corporation tax will increase from 19% to 25%. The rate will remain at 19% for small businesses.
• The annual exemption for capital gains tax will reduce from £12,300 to £6,000 from 6 April 2023. It will reduce further to £3,000 from 6 April 2024.
• The benefit in kind charge for electric vehicles will increase by 1% in 2025/26 with further increases proposed in subsequent years.
• From 1 April 2023, R&D relief for small businesses will be reduced from 130% to 85%.
• Plans to scrap the IR35 rules for the private sector in the mini budget have been reversed. IR35 to remain in place.

At a time of rising inflation, the freezing of tax thresholds in the Autumn Statement will give rise to stealth taxes as more people will be dragged into the higher tax threshold in 2023. The combination of rapidly rising prices, combined with an increase in taxation and interest rates will likely lead to a significant recession next year.  

A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.