Tax Tables 2022/23
INCOME TAX Main personal allowances and reliefs 22/23 21/22 Personal allowance* £12,570 £12,570 Marriage/civil partner’s transferable allowance £1,260 £1,260 Married couple’s/civil partner’s allowance at 10%† (if at least one born before 6/4/35) – maximum £9,415 £9,125 – minimum £3,640 £3,530 Blind person’s allowance £2,600 £2,520 Rent-a-room relief £7,500 £7,500 Property allowance and trading allowance (each) £1,000 £1,000 *Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000 †Married couple’s/civil partner’s allowance reduced by £1 for every £2 of adjusted net income over £31,400 (£30,400 for 21/22), until minimum reached UK taxpayers excluding Scottish taxpayers’ 22/23 21/22 non-dividend, non-savings income 20% basic rate on first slice of taxable income up to £37,700 £37,700 40% higher rate on next slice of taxable income over £37,700 £37,700 45% additional rate on taxable income over £150,000 £150,000 Scottish taxpayers – non-dividend, non-savings income 19% starter rate on taxable income up to £2,162 £2,097 20% basic rate on next slice up to £13,118 £12,726 21% intermediate rate on next slice up to £31,092 £31,092 41% higher rate on next slice up to £150,000 £150,000 46% top rate on income over £150,000 £150,000 All UK taxpayers Starting rate at 0% on band of savings income up to** £5,000 £5,000 Personal savings allowance at 0%: Basic rate £1,000 £1,000 Higher rate £500 £500 Additional rate £0 £0 Dividend allowance at 0%: All individuals £2,000 £2,000 Tax rates on dividend income: Basic rate 8.75% 7.5% Higher rate 33.75% 32.5% Additional rate 39.35% 38.1% Trusts: Standard rate band generally £1,000 £1,000 Rate applicable to trusts: Dividends 39.35% 38.1% Other income 45% 45% **Not available if taxable non-savings income exceeds the starting rate band High Income Child Benefit Charge, 1% of benefit per £100 of adjusted net income between £50,000–£60,000 REGISTERED PENSIONS 22/23 21/22 Lifetime allowance £1,073,100 £1,073,100 Money purchase annual allowance £4,000 £4,000 Annual allowance* £40,000 £40,000 Annual allowance charge on excess is at applicable tax rate(s) on earnings Lifetime allowance charge if excess is drawn as cash 55%; as income 25% Pension commencement lump sum up to 25% of pension benefit value *Reduced by £1 for every £2 of adjusted income over £240,000 to a minimum of £4,000, subject to threshold income being over £200,000
STATE PENSIONS New state pension – where state pension age Annual Weekly reached after 5/4/16 £9,627.80 £185.15 Basic state pension – single person* £7,376.20 £141.85 Basic state pension – spouse/civil partner* £4,420.00 £85.00 *State pension age reached before 6/4/16 TAX INCENTIVISED INVESTMENT Total Individual Savings Account (ISA) 22/23 21/22 limit, excluding Junior ISAs (JISAs) £20,000 £20,000 Lifetime ISA £4,000 £4,000 JISA and Child Trust Fund £9,000 £9,000 Venture Capital Trust (VCT) at 30% £200,000 £200,000 Enterprise Investment Scheme (EIS) at 30%* £2,000,000 £2,000,000 EIS eligible for CGT deferral relief No limit No limit Seed EIS (SEIS) at 50% £100,000 £100,000 SEIS CGT reinvestment relief 50% 50% *Above £1,000,000 investment must be in knowledge-intensive companies NATIONAL INSURANCE CONTRIBUTIONS Class 1 Employee Employer NICs rate 13.25% 15.05% No NICs for employees generally on the first £242 pw† £175 pw No NICs* for: younger/veteran employees on first £242 pw† £967 pw freeport employees on first £242 pw† £481 pw NICs rate charged up to £967 pw No limit 3.25% NICs on earnings over £967 pw N/A *Employees generally under 21 years and apprentices under 25 years. Veterans in first 12 months of civilian employment. Employees at freeports in Great Britain in the first three years of employment from 6 April 2022 Employment Allowance £5,000 Per business – not available if sole employee is a director or employer’s NICs for 21/22 £100,000 or more Limits and Thresholds Weekly Annual Lower earnings limit £123 £6,396 Primary threshold £242† £12,570** Secondary threshold £175 £9,100 Upper earnings limit (and upper secondary thresholds) £967 £50,270 Class 1A Employer On car and fuel benefits and most other taxable benefits provided to employees and directors 15.05% Class 2 Self-employed Flat rate per week £3.15 (£163.80 pa) Small profits threshold £6,725 Class 4 Self-employed On annual profits of £11,908 to £50,270: 10.25% Over £50,270: 3.25% Class 3 Voluntary flat rate per week £15.85 (£824.20 pa) †£190 pw before 6 July 2022 **£9,880 before 6 July 2022 CAPITAL GAINS TAX Tax Rates – Individuals 22/23 21/22 Below UK higher rate income tax band 10% 10% Within UK higher and additional rate income tax bands 20% 20% Tax Rate – Trusts and Estates 20% 20% Surcharge for residential property and carried interest 8% 8% Annual exempt amount: Individuals, estates, etc. £12,300 £12,300 Trusts generally £6,150 £6,150 Chattels gain limited to 5⁄ 3 rds of proceeds exceeding £6,000 £6,000 Business Asset Disposal Relief 10% on lifetime limit of £1,000,000 for trading businesses and companies (minimum 5% participation) held for at least two years
INHERITANCE TAX 22/23 21/22 Nil-rate band* £325,000 £325,000 Residence nil-rate band*† £175,000 £175,000 Rate of tax on excess 40% 40% Rate if at least 10% of net estate left to charity 36% 36% Lifetime transfers to and from certain trusts 20% 20% Overseas domiciled spouse/civil partner exemption £325,000 £325,000 100% relief: businesses, unlisted/AIM companies, certain farmland/ buildings 50% relief: certain other business assets e.g. farmland let before 1/9/95 Annual exempt gifts of: £3,000 per donor £250 per donee Tapered tax charge on lifetime gifts within 7 years of death Years between gift and death 0–3 3–4 4–5 5–6 6–7 % of death tax charge 100 80 60 40 20 *Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band and/or residence nil-rate band can be claimed on the survivor’s death †Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000 STAMP DUTIES AND PROPERTY TRANSACTION TAXES Stamp Duty and SDRT: Stocks and marketable securities 0.5% Additional residential and all corporate residential properties £40,000 or more – add 3% to SDLT rates and 4% to LBTT and LTT rates England & N Ireland – Stamp Duty Land Tax (SDLT) on slices of value Residential property % Commercial property* % Up to £125,000 0 Up to £150,000 0 £125,001–£250,000 2 £150,001–£250,000 2 £250,001–£925,000 5 Over £250,000 5 £925,001–£1,500,000 10 Over £1,500,000 12 *0% for freeport qualifying property in England only First time buyers: 0% on first £300,000 for properties up to £500,000 Non-resident purchasers: 2% surcharge on properties £40,000 or more Residential properties bought by companies etc over £500,000: 15% of total consideration, subject to certain exemptions Scotland – Land and Buildings Transaction Tax (LBTT) on slices of value Residential property % Commercial property % Up to £145,000 0 Up to £150,000 0 £145,001–£250,000 2 £150,001–£250,000 1 £250,001–£325,000 5 Over £250,000 5 £325,001–£750,000 10 Over £750,000 12 First time buyers: 0% on the first £175,000 Wales – Land Transaction Tax (LTT) on slices of value Residential property % Commercial property % Up to £180,000 0 Up to £225,000 0 £180,001–£250,000 3.5 £225,001–£250,000 1 £250,001–£400,000 5 £250,001–£1,000,000 5 £400,001–£750,000 7.5 Over £1,000,000 6 £750,001–£1,500,000 10 Over £1,500,000 12 CORPORATION TAX Years to 31/3/23 and 31/3/22 Profits: 19% Diverted profits: 25% Loans to participators Made in 21/22: 32.5% Made in 22/23: 33.75%
VALUE ADDED TAX Standard rate 20% Domestic fuel 5% Installation of energy saving materials (except Northern Ireland) 0% Since 1/4/17: Registration level £85,000 Deregistration £83,000 Flat rate scheme turnover limit £150,000 Cash and annual accounting schemes turnover limit £1,350,000 CAR BENEFITS Taxable amount based on original list price and CO2 emissions in g/km. Zero emission cars 2% Petrol and diesel hybrids with CO2 emissions 1–50g/km Range – electric-only miles < 30 30–39 40–69 70–129 130+ 14% 12% 8% 5% 2% All non-diesel cars over 50g/km CO2 51–54 55 & over 15% 16% * –37% *Increased for every extra 5g/km by 1% up to the maximum 37% Diesels not meeting RDE2: add 4% to non-diesel rates, up to 37% Fuel Benefit – taxable amount for private use 22/23 21/22 CO2 % charge used for car benefit multiplied by £25,300 £24,600 VANS – FOR PRIVATE USE 22/23 21/22 Zero emission: chargeable amount Nil Nil Other vans: chargeable amount £3,600 £3,500 Fuel: chargeable amount £688 £669 TAX-FREE BUSINESSMILEAGE ALLOWANCE –OWN VEHICLE Cars and vans first 10,000 miles 45p per mile then 25p per mile Qualifying passenger 5p per mile Motorcycles 24p per mile Bicycles 20p per mile MAIN CAPITAL AND OTHER ALLOWANCES Plant & machinery (P&M) 100% annual investment allowance (1st year): To 31/3/23 £1,000,000 P&M* super-deduction first year allowance (FYA) for companies to 31/3/23 130% Special rate P&M* FYA for companies to 31/3/23 50% Plant and machinery** 18% Patent rights and know-how** 25% Special rate P&M e.g. long-life assets and integral features of buildings** 6% Structures and buildings (straight line)† 3% Electric charge points 100% Motor Cars CO2 emissions of g/km: 0* 1–50 Over 50 Capital allowance: 100% first year 18% pa** 6% pa** *New and unused only **Annual reducing balance †10% for freeport sites in Great Britain Research and Development Capital expenditure 100% Revenue expenditure relief – small/medium-sized companies 230% Research and development expenditure credit – large companies 13%
} SOCIAL SECURITY BENEFITS Weekly rates for 2022/23 (taxable unless stated otherwise). Employment and Support Allowance (contribution-based taxable) 13-week assessment phase Aged under 25: up to £61.05 Aged 25 or over: up to £77.00 From week 14 after Work Capability Assessment if eligible In Work Related Activity Group up to £107.60 In Support Group up to £117.60 Bereavement Support Payments (non-taxable) – initial and for 18 months Higher rate:* £3,500 lump sum £350 monthly Standard rate: £2,500 lump sum £100 monthly *If entitled to or claiming Child Benefit or pregnant at partner’s death Statutory Pay Rates Based onminimum average earnings of at least £123pw: Statutory Sick Pay £99.35 standard rate Statutory Maternity Pay/Statutory Adoption Pay First 6 weeks – 90% of average weekly pay Next 33 weeks – 90% of average weekly pay up to £156.66 Statutory Paternity Pay 90% of average weekly pay up to £156.66 Shared Parental Pay Up to 37 weeks: 90% of average weekly pay up to £156.66 Child Benefit (see ‘Income Tax – High Income Child Benefit Charge’) First or only child £21.80 Each subsequent child £14.45 National Living/National Minimum Wage (hourly) 1/4/22 – 31/3/23 Aged 23 and over National Living Wage £9.50 Aged 21–22 National Minimum Wage £9.18 Aged 18–20 National Minimum Wage £6.83 Aged under 18 National Minimum Wage £4.81 Apprentice National Minimum Wage £4.81 MAIN DUE DATES FOR TAX PAYMENTS Income Tax, NICs and Capital Gains Tax – Self-Assessment 31 Jan in tax year Normally 50% of previous year’s income tax Following 31 July (less tax deducted at source) and class 4 NICs Following 31 Jan Balance of income tax, class 4 NICs, CGT and all class 2 NICs Inheritance Tax On death: Normally 6 months after end of month of death Lifetime transfer 6 April–30 September: 30 April in following year Lifetime transfer 1 October–5 April: 6 months after month of transfer Corporation Tax – Self Assessment • Profits under £1,500,000: 9 months + 1 day after end of accounting period • Profits £1,500,000 or over: normally payable in 7th, 10th, 13th and 16th months after start of the accounting period • Profits £20,000,000 or over: normally payable in 3rd, 6th, 9th and 12th months after start of the accounting period • Growing companies: no instalments where profits are £10,000,000 or less and the company was not a large company for the previous year. © Copyright 23 March 2022 Subject to relevant legislation For information only Always seek professional advice before acting
2022/23 TAX CALENDAR Make payment on previous working day where due date falls on a weekend/ bank holiday. Every month 19 Submit CIS contractors’ monthly return. 22 PAYE/NICs/CIS deductions paid electronically for period ending 5th of the month (19th if not paying electronically). Month end Submit CT600 for year ending 12 months previously. Last day to amend CT600 for year ending 24 months previously. April 2022 1 VAT rate on hospitality, holiday accommodation and attractions increases from 12.5% to 20%. New VAT points-based penalty regime starts. All voluntarily VAT registered businesses must send VAT returns using MTD software. 6 New NIC rates and dividend tax rates come into force. July 2022 5 Last date to agree a new PAYE Settlement Agreement (PSA) for 2021/22. 6 The annual NIC primary threshold and lower profits limit increase from £9,880 to £12,570. Deadline for employers to return forms P11D (expenses) and P11D (b) (benefits) for 2021/22 to HMRC and provide copies to employees. 22 Pay class 1A NICs (19 July if not paying electronically). 31 Confirm tax credit claims for 2021/22 and renewal for 2022/23. Second payment on account for 2021/22 income tax and class 4 NICs. August 2022 1 Penalty of 5% of the tax due or £300, whichever is the greater, where the 2020/21 tax return has not been filed. October 2022 5 Deadline to register for self-assessment for 2021/22. 22 Pay tax and class 1B NICs on PSAs (19th if not paying electronically). 31 Deadline for 2021/22 tax return if filed on paper. December 2022 30 Deadline to submit 2021/22 tax return online to have underpaid PAYE tax collected through the 2023/24 tax code. January 2023 31 Submit 2021/22 self-assessment tax return online. Pay balance of 2021/22 income tax, class 4 NICs, CGT and all class 2 NICs plus first payment on account for 2022/23 income tax and class 4 NICs. February 2023 1 Initial penalty imposed where the 2021/22 tax return has not been filed or has been filed on paper after 31 October 2022. March 2023 2 Last day to pay 2021/22 tax to avoid automatic 5% penalty.
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