New tax year incoming
With a month to go until a new tax year. Here’s a reminder of some of the key changes for 2023/24:
For our full Autumn statement summary please click here
National Insurance:
- The increase in NI rates was reversed in November.
- The planned Health and Social Care Levy has also been scrapped.
- The thresholds for NI remain the same for the new tax year.
Income Tax:
- Basic rate to stay at 20%.
- Additional rate threshold of 45% to reduce from £150,000 to £125,140.
- Personal allowance and higher rate threshold to remain at current levels.
Dividends
- Tax rates stay the same – ordinary rate at 8.75%.
- Allowance is reduced however from £2,000 to £1,000
Corporation Tax:
- Increased to 25% for business with profits over £250,000.
- 19% rate remains for businesses below £50,000 profit.
- Marginal relief between £50,001 and £250,000 profits.
Minimum Wage Rates
- In effect from 1 April 2023.
- £10.42 for 23s and over.
- For full rates see here
Statutory Pay Increases
- Weekly statutory rate for parental leave pay increases to £172.48.
- Statutory sick pay weekly rate up to £109.40.
- For full rates see here
If you have any queries or require advice on tax or payroll matters in relation to the new year please get in touch with us on 01422 331001 or at sw@spenserwilson.co.uk.