2022-23 Tax Rates & Allowances
A handy summary of tax rates and allowances for 2022-23
Income Tax 2022-23
Personal allowances
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Personal allowance (PA)
£12,570
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PA restricted by £1 for every £2 of adjusted net income over
£100,000
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Transferable tax allowance for certain married couples
£1,260
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Blind person's allowance
£2,600
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Married couples' allowance (at least one born pre 6 Apr 1935):
Maximum (relief given at 10%) £9,415
Minimum (relief given at 10%) £3,640
Other allowances
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Personal savings allowance:
Basic rate taxpayers £1,000
Higher rate taxpayers £500
Additional rate taxpayers £0
Maximum savings starting rate (non-savings income < PA)
Reduces by £1 for every £1 of non-savings income > PA £5,000
Dividend allowance
£2,000
Rent-a-room relief amount
£7,500
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Trading allowance
£1,000
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Property allowance
£1,000
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Income Tax bands and rates 2022-23
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Basic Rate
Basic rate band: £37,700 20%
Savings 20%
Non-savings 20%
Dividends 8.75%
Gift Aid and pension contributions can extend basic rate band.
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Higher Rate
Higher rate band: £37,701-£150,000
Savings 40%
Non-savings 40%
Dividends 32.5%
Additional Rate
Additional rate band: £150,000 +
Savings 45%
Non-savings 45%
Dividends 39.35%
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Child benefit
One child (per week) £21.80
Additional children (per week) £14.45
Reduced by 1% for every £100 of income over £50,000
Child benefit fully repayable if income over £60,000
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Corporation Tax 2022-23
Corporation Tax
Rate 19%
S.455 tax on loans to participators 33.75%
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Capital allowances
Annual Investment Allowance (100%) up to £1,000,000
Super deduction (company expenditure on new assets 01.04.21 and 31.03.23) 130%
Special rate allowance (company expenditure on new special rate assets 01.04.21 and 31.03.23) 50%
Plant and machinery general pool Writing Down Allowance (WDA) 18%
Integral features and certain long-life assets WDA 6%
Small pool WDA where balance <£1,000 100%
First Year Allowance for electric charge-points 100%
First Year Allowance for new zero-emission goods vehicles 100%
First Year Allowance for new plant and machinery used in Freeports 100%
Structures and Buildings Allowance (SBA) 3%
Enhanced SBA for Freeports 10%
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Capital allowances: cars
New and unused with CO2 emissions of 0g/km 100%
New or second-hand with CO2 emissions of up to 50g/km 18%
New or second-hand with CO2 emissions above 50g/km 6%
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Capital Gains Tax (CGT) 2022-23
Annual exemption for individuals £12,300
Annual exemption for trusts generally £6,150
Rates Individuals:
Basic rate 10%
Above basic rate 20%
Additional surcharge applicable to residential property gains 8%
Trusts 20%
Companies 8%
Business Asset Disposal Relief: qualifying lifetime limit £1,000,000
Investors' Relief: qualifying lifetime limit £10,000,000
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Inheritance Tax 2022-23
Nil rate band £325,000
Residence nil rate band £175,000
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VAT (Value Added Tax) 2022-23
Registration threshold (taxable turnover, i.e. excl. exempt) £85,000
Deregistration threshold £83,000
Rates:
Standard 20%
Reduced 5%
Zero 0%
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Cash accounting & annual accounting:
Taxable turnover upper limit for joining £1,350,000
Taxable turnover upper limit for leaving £1,600,000
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Flat rate scheme:
Taxable turnover upper limit for joining £150,000
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National Insurance Contributions (NIC's) 2022-23
Class1 (Employers & Employee's)
Lower earnings limit
Weekly £123
Monthly £533
Yearly £6,396
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Primary threshold
Weekly £242
Monthly £1,048
Yearly £12,570
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Upper earnings limit
Weekly £967
Monthly £4,189
Yearly £50,270
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Secondary threshold
Weekly £175
Monthly £758
Yearly £9,100
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Upper secondary threshold (under 21)
Weekly £967
Monthly £4,189
Yearly £50,270
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Apprentice (under 25) upper secondary threshold
Weekly £967
Monthly £4,189
Yearly £50,270
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Rates
Employees' main rate (primary threshold to upper earnings limit)
6 April 2022 to 5 November 2022 13.25%
6 November 2022 to 5 April 2023 12%
6 April 2022 to 5 April 2023 (annual: directors) 12.73%
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Employees' lower rate (above upper earnings limit)
6 April 2022 to 5 November 2022 3.25%
6 November 2022 to 5 April 2023 2%
6 April 2022 to 5 April 2023 (annual: directors) 2.73%
Employers' rate*
6 April 2022 to 5 November 2022 15.05%
6 November 2022 to 5 April 2023 13.8%
6 April 2022 to 5 April 2023 (annual: directors) 14.53%
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Married women’s reduced rate between primary threshold and upper earnings limit
6 April 2022 to 5 November 2022 7.1%
6 November 2022 to 5 April 2023 5.85%
Married women’s rate above upper earnings limit
6 April 2022 to 5 November 2022 3.25%
6 November 2022 to 5 April 2023 2%
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Classes 1A and 1B (employers)
Class 1A 14.53%
Class 1B 14.53%
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Classes 2 and 4 (self-employed)
Class 2
Flat rate per week £3.15
Small profits threshold £6,725
Lower profits limit £11,908
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Class 4
Profit threshold £11,908 to £50,270
Rate 9.73%
On profits over £50,270 2.73%
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Class 3 (voluntary)
Flat rate per week £15.85
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