VAT REGISTRATION AND DE-REGISTRATION LIMITS

No changes to the current limits which are:-

  • Registration threshold remains at £85,000
  • Deregistration threshold remains at £83,000

PERSONAL TAX ALLOWANCE

For the 2023-24 tax year the personal tax allowance remains at £12,570

CORPORATION TAX RATE

The main rate of corporation tax has increased to 26.5% for profits between £50,001 – £250,000, this will be reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate. For profits under £50,000 it will remain at 19% and for profits over £250,000 it will at 25%.

CAPITAL GAINS TAX (CGT)

CGT Annual Exempt amount – This has been reduced from £12,300 to £6,000 and will be further reduced to £3,000 in the 2024 tax year.0

CGT Rate – There has been no change to the rate of Capital Gains Tax

60 day CGT reporting for UK residential property disposals – There were no changes to the reporting and payment on account obligations for chargeable gains on UK residential property. The deadline to report and pay CGT remains at 60 days after the completion date.

CAPITAL ALLOWANCES

The Annual Investment Allowance (AIA) allows businesses to offset the cost of eligible plant and machinery purchases to reduce taxable profits. Currently the annual limit is £1 million for the current tax year.

DIVIDEND TAX

Tax-free dividend allowance has reduced to £1,000.

Basic rate dividend tax has remained at 8.75%

Higher rate dividend tax has remained at 33.75%

NATIONAL MINIMUM WAGE – NEW RATES FROM 1st APRIL 2023

The new national minimum wage rates from 1st April 2023 are as follows:

  • £10.42 per hour – 23 yrs. old and over
  • £10.18 per hour – 21-22 yrs. old
  • £7.49 per hour – 18-20 yrs. old
  • £5.28 per hour – under 18yrs. old
  • £5.28 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

EMPLOYMENT ALLOWANCE

The employment allowance remains at £5,000 per tax year.

HOLIDAY ENTITLEMENT

There have been significant changes recently to the calculation of holiday entitlement. Our payroll manager Nicola Taylor will be happy to assist with this is you require further clarification, she can be reached on 07719 817280

DIRECTORS SALARIES FROM APRIL 2023

We recommend that all directors salaries are set at £1,045 per month from April 2023.

HMRC – SELF EMPLOYED TAX RETURNS MTD (Making Tax Digital)

HMRC plan to bring in MTD for all self-employed and unincorporated landlords (with a property income or gross income over £10,000) this was originally planned for 1st April 2024 but has been delayed until 1st April 2026.

PENSION PAYMENTS

The annual allowance that you can pay into a private pension pot in one tax year before you start paying tax has been increased to £60,000 per year.