We love a list that gets right to the point. So here is our key points for businesses in the UK from the Chancellor's autumn budget 2021:
1) Dividends: rise of 1.25% tax after nil band from 7.5% to 8.75% and higher rate band up from 32.5% to 33.75% from April 2022
2) Capital gains tax (CGT): with immediate deadline to report & pay after selling a UK residential property has increased from 30days to 60days after completion date. Giving landlords more time
3) Corporation tax: will rise from 19 % to 25 % from April 23. Businesses with profits less than £50k will get a small profit rate which is still 19%. For profits above £50,000 there is a tapered rate with bands & %’s going up to the 25% rate.
4) National insurance: Increase 1.25% national insurance contribution for all (employees, employers & self-employed) from April 2022.
5) National living wage: increase from £8.91 to £9.50 p/hr.
6) R&D tax relief: to be expanded to cover cloud computing & data costs now also as well.
7) Business rates : Rates revaluation cycle changed from 5 years to 3 years from 2023. New Improvement Relief, for businesses to improve/extend property, meaning they won’t pay additional business rates in 12 months after improvements. Plus a 50% business rates discount from April 2022 (to max £110k) for 1 year for retail, hospitality & leisure.
8) Annual investment allowance (AIA): £1m Annual Investment Allowance (AIA) extended to March 2023.
If your business is effected by these changes and you want help and support contact us today
By Anni Khan at Tax Affinity Accountants
Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.
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