As you will be aware, changes to the tax rules, designed to increase funding for the NHS, will begin to take effect in April 2022.
With just a few weeks to go business owners need to consider what impact the changes will have on their business and personal tax positions – and decide whether they should take any action.
All classes of National Insurance contributions (including employers) will increase by 1.25% from April 2022.
This will mean a reduction in take home pay for most employees and increased payroll costs for employers.
From April 2022, dividend tax rates will increase by 1.25%.
Basic rate taxpayers will have to pay tax at 8.75% rather than the current 7.5%.
Higher rate taxpayers will see the rate of tax they pay rise from 32.5% to 33.75%, with additional rate, tax payers rate of tax, increasing to 39.6%.
The £2,000 dividend allowance, to which everyone is entitled, will remain unchanged.
If you would like more information, please contact Peter Robertson: firstname.lastname@example.org or your usual Dixcart UK contact.