Spring Statement 2023
The Chancellor Jeremy Hunt presented his Spring Budget on 15th March 2023. Some of the key highlights include the following:
- Corporation Tax to increase as previously announced.
- Dividends will be chargeable to tax at 0% up to £1,000 in the year 2023/24, falling to £500 in 2024/25 reducing from £2000 2022/23.
- Income tax personal allowance will be fixed at £12,570 until April 2028. Personal allowance will be reduced for those with ‘adjusted net income’ over £100,000 and no personal allowance for over £125,140.
- Making Tax Digital for income tax self assessment will be mandated for incomes over £50,000 from April 2026, and over £30,000 from April 2027.
- Taxpayers can no longer assign their income tax repayment, or their right to one, to a third party (i.e. a business, accountancy firm or agent).
- Benefits for company-owned vans will rise. The limit on free fuel for employees driving company cars will increase.
- National Living Wage and National Living Wage will rise.
- Annual Allowance for pensions will increase from £40,000 to £60,000 in April 2023.
- The super-deduction scheme on the purchase of qualifying plant and machinery will end March 2023, to be replaced by Full Expensing. This means the cost can be deducted from profits immediately with no expenditure limit.
- Research & Development Expenditure Credit to increase, but Small and Medium-sized Enterprises (SME) additional deduction and SME credit rate will fall.
For full details of the budget please use the following link: Wettone Matthews Spring Budget 2023