The Government has said corporate tax rate will be hiked to 25% from April 2023. Businesses with profits <£50,000 will continue to benefit from 19% rate, while a tapered rate will be introduced for profits between £50,000 and £250,000.
The Government has also announced that the rate of VAT for the tourism and hospitality sector will not return to the headline rate from September 30, 2021, when the current concessionary 5% is due to expire. Instead a 12.5% rate will be offered for a further 6 months, until 31 March 2022.
The VAT registration threshold remains at £85,000 until April 2024
In addition, the business rates holiday in England is to be extended by an extra 3 months, from 1 April to 30 June 21, and then a reduced rate of relief will be offered.
The existing stamp duty land tax holiday will be extended in full until 30 June 2021 and will be phased out by September 2021.
The Government has announced that individual income tax thresholds will be frozen from April 2022 until April 2026.
If you would like to know more details or how this information impacts you, please get in touch.
Alternatively, please see the government’s website for further information:
https://www.gov.uk/government/publications/corporation-tax-charge-and-rates-from-1-april-2022-and-small-profits-rate-and-marginal-relief-from-1-april-2023/corporation-tax-charge-and-rates-from-1-april-2022-and-small-profits-rate-and-marginal-relief-from-1-april-2023#:~:text=Legislation%20will%20be%20introduced%20in,25%25%20for%20Financial%20Year%202023.