In case you have not already seen the news in the last few weeks, there have been a few different changes to tax rates, government schemes ending, and other important measures that can affect your personal or business’ finances. We have created a summary below, so you do not miss any of them.
One of the most significant and more talked-about changes was the 1.25% hike to the National Insurance tax paid by employers and 1.25% by employees from April 2022. We have written a full article on this which can be seen here.
Additionally, the VAT rate for the Tourism and Hospitality Industry has increased since 1 October 2021 to 12.5% for 6 months, until 1 April 2022 when it will increase to its original VAT rate of 20%.
Stamp Duty Rates from 1 October 2021 will change depending on the property, lease premium or transfer value. On properties up to £125,000 in value there is no stamp duty owed, from £125,000 to £250,000 stamp duty is 2%, from £250,000 to £925,000 stamp duty due is of 5%.
The Furlough scheme ended at the end of September 2021 which was one of the last major financial support measures the government offered during Covid.
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim a 130% super-deduction capital allowance on plant and machinery investments and a 50% first-year allowance for special rate assets. See the Super-deduction factsheet for more information. The new rates also apply if you bought a property before 8 July 2020.
The Autumn Budget was announced a few weeks back and the most notorious changes were the National Minimum Wage increase, the new business rates, and capital allowances. There were hardly any tax announcements that could affect your business as they were already set out in the Spring Budget. To read the full article about the Autumn Budget please click here.
If you are unsure or would like more information about any specific topic above, we invite you to contact your local accountant to guide you further. To stay up to date, we regularly update our news and articles section as well as our social media accounts to keep you informed.