Recovery Loan Scheme extended
The Recovery Loan Scheme, one of the financial measures introduced by the government in response to the Covid-19 pandemic, will be extended until 30th June 2022. Additional changes to the scheme will be introduced on 1st January 2022.
Annual Investment Allowance extended
The temporary £1 million upper limit for the Annual Investment Allowance will remain in place until March 2023.
Basis period reform
Planned basis period reforms are changes that will affect all unincorporated businesses that do not have either a 31stMarch Accounting Year End or a 5th April Accounting Year End Year. The changes will be implemented on 6th April 2024.
Additional R&D tax relief
Research and Development (R&D) tax relief will be made available for a wider range of business costs, including cloud computing and data.
Capital Gains Tax Report - UK residential property
From 27th October 2021 individuals who sell a UK residential property will have an extended window of 60 days after the sale’s completion date in which to report and pay Capital Gains Tax.
Corporation Tax rate set to increase in 2023
In April 2023, the rate of Corporation Tax on company profits will increase to 25% for companies with profits over £250,000. Companies with profits under £50,000 will continue to pay Corporation Tax at the rate of 19%, with profits between those levels taxed on a sliding scale.
Wider scope for carrying business losses back
Businesses will be able to carry back losses for up to three years. This will apply to all incorporated and unincorporated business.
Health and Social Care Levy
The levy results in an initial temporary increase in National Insurance rates from April 2022 before being replaced with a separate levy that will be assessed through the payroll from April 2023. The levy will result in NIC increases of 1.25% for both employee, employer and the self-employed.
Income Tax on Dividends
Income tax on dividend from 6 April 2022 are:
• Basic rate taxpayers will pay a tax rate of 8.75%.
• Higher rate taxpayers will pay a tax rate of 33.75%.
• Additional rate taxpayers will pay a tax rate of 39.35%
Copyright © 2018 Kelpie Accounting and Tax Ltd - All Rights Reserved.
Director - Ian Blackwood CA CTA