Posted: 22, March 2022 by Amy Richardson
Changes to the 2022/2023 Tax Year
Unless the Chancellor makes an announcement between now and the start of the new Tax Year, which is unlikely, the new changes you need to know are:
2022/2023 National Insurance changes
For earnings below £50,270
National Insurance Contributions for workers and employers increase by 1.25% from 6 April 2022, to 13.25%.
National Insurance Contributions for the self-employed will increase to 10.25%.
For Earnings above 50,270
National Insurance Contributions for workers, employers and the self-employed will be 3.25%
2022/2023 Dividend Tax Rates Increase
Basic rate taxpayers dividend tax will be 8.75%, for higher rate tax payers 33.75 and 39.35% for additional rate taxpayers.
VAT changes in the Hospitality sector
During the Covid-19 pandemic, VAT for the leisure and hospitality management was temporarily reduced and currently sits at 12.5%.
This reduced rate is due to increase back to 20% as of the 1st April 2022.
Minimum Wage
Increases in the National Minimum Wage are:
Aged 23 and above - £9.50
Aged between 21-22 £9.18
Aged between 18-20 £6.83
Aged under 18 16-17 £4.81
Apprentice Rate aged under 19 £4.81
Apprentice rate aged 19 and over, but in the first year of their apprenticeship £4.81
Any Amendments will be updated as and when they are released