Reversal of National Insurance rate increase confirmed
There are plenty of rumours about what tax measures might be included in tomorrow’s mini-Budget. However, a widely-expected change to the NI rates has already been confirmed. What do we know?
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HMRC clarifies treatment of averaging relief under MTD IT
HMRC has updated its guidance to explain how averaging relief claims will operate under Making Tax Digital for Income Tax (MTD IT). The clarification addresses concerns about how farmers and creators will claim relief once quarterly reporting becomes mandatory. What has changed?
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Double up on the employment allowance
You’re the sole shareholder of a limited company which employs several members of staff. You’re working on plans to start another business with an ex-colleague. Can both businesses benefit from the full employment allowance (EA)?
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VAT cut for children's holiday activities over summer
The government has announced a temporary reduction in the rate of VAT applying to certain children's holiday activity programmes during the summer holidays. The measure is intended to help families with childcare costs during the school break. What has changed?
The new Prime Minister’s leadership campaign included a very vocal pledge to scrap the NI rate increase that took effect in April 2022. As a result, it is not surprising that this has now been confirmed. The NI rates for primary and secondary Class 1, Class 1A and Class 4 NI will all reduce by 1.25% from 6 November 2022, reverting to the levels they were at for 2021/22. The news article on GOV.UK indicates that the increases in thresholds, including the primary threshold, that took effect in July will be retained.
The article also says that it is “expected” that the Chancellor will reverse the increase to dividend tax rates, albeit not until April 2023.
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