By LawBite Team
During 2022, there are several tax changes you need to be aware of so you can manage your cash flow and comply with tax reporting obligations.
In this article, using useful information from which.co.uk we explain the tax changes SMEs need to factor into their planning for the 2022/23 tax year.
National Insurance (NI) rates are set to increase by 1.25% from 6 April 2022. This is primarily driven by increasing expenditure on social care and the health service as a whole.
For the 2022/23 tax year the increase will be paid as part of employees’ existing NI payments, however, from 6 April 2023, the plan is to make the health and social care levy separate.
The NI lower earnings threshold is set to increase by 3.1%. Upper earnings thresholds are being frozen at £50,270.
The below table sets out the differences in NI rates and thresholds between the 2021/22 tax year and the 2022/23 tax year.
The tax applied to dividend payments will increase by 1.25% from 6 April 2022.
If your investments are wrapped up in an ISA, you will not be charged dividend tax.
Inheritance tax can be extremely complex for business owners. Working with an experienced Commercial Law Solicitor can make succession planning and tax planning run smoothly. There has been a change in the classification of an ‘exempted estate’ for the purposes of Inheritance Tax (IHT). If a person dies after 1 January 2022, their estate will be classed as exempted if it is:
For overseas residents who die owning UK assets, the estate will be exempt from UK IHT if the UK assets are worth less than £150,000.
If you have a buy-to-let investment or second home and it was sold after 27 October 2021, the time available for taxpayers to report any capital gains and pay any tax owing has increased from 30 days to 60 days.
Taxes relating to commercial activity can be complex. Our Commercial Law Solicitors and Tax Law Solicitors have the knowledge and experience so you can feel confident that the legal elements of your tax matters are taken care of.
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