The key announcements from the March 2022 budget are summarised below. If you would like to discuss any of the points and its practical implications for you and your business, please get in touch.

Personal Tax Bands

Personal Allowance – for 2022/2023, this will remain the same at £12,570 and the higher rate threshold will also remain at £50,270.
Income Tax will remain at 20% until April 2024 when there will be a reduction to 19%.
National Insurance – the threshold for paying National Insurance will rise at 6 April 2022 to £9,880, followed by another increase from 6 July 2022 to £12,570, in line with the Personal Allowance.
National Insurance rates will rise by 1.25% in 2022/2023, as previously announced (see our October 2021 Budget update).

Corporation Tax - No change for the upcoming year and as announced in the last Budget, Corporation Tax rates to rise to 25% from April 2023 for Companies with profits more than £250,000. Companies with profits of £50,000 or less will still pay Corporation Tax at 19%, with the rate set to be tapered for those in between.

Employers - ·Employment Allowance – will increase to £5,000 (was £4,000)