Services tailored to you...
With over five decades’ experience serving a diverse range of clients in the South West, we possess an unbeatable depth of knowledge across a wide range of industry sectors.
Our specialist partners and teams can provide expert advice on everything from farming and agriculture, to military tax allowances. We’re here to help you make the most of your planning opportunities so that you can grow with confidence.
Income tax
The basic rate of income tax is set to fall to 19% from April 2024.
There is a knock-on consequence for charitable gifts made under the Gift Aid scheme, reducing the amount that can be claimed back by recipient charities. The government therefore proposes a three-year transition period, during which income tax basic rate relief remains at 20% for charities. This will run until April 2027.
National insurance
There is considerable change here for the self employed and company directors.
For the self-employed, there is an increase in what is called the Lower Profits Limit for Class 4 national insurance contributions (NICs). This will align it with the personal allowance for income tax, which is set at £12,570 pa. To put the headline figures from the Spring Statement in context, although NICs will change from 6 July 2022, Class 4 is calculated on an annual basis, so the full effect of the Chancellor’s announcement won’t be felt until the following tax year. For the year to 5 April 2023, the Lower Profits Limit is £11,908.
Self-employed Class 2 NICs will be reduced to nil on profits between the Small Profits Threshold (£6,725 in 2022/23) and the Lower Profits Limit, though NI credits for state pension purposes will still accrue. This took effect from 6 April 2022.
Company directors who have an annual pay period will have a Primary Class 1 Threshold of £11,908 for 2022/23 and £12,570 for 2023/24.
A regular review of your tax position can often prove beneficial and we would be delighted to help you take stock of these or any other tax issues.