There’s good news and bad news. Income tax rates generally aren’t increasing. However as inflation steadily rises tax breaks such as your Personal Allowance are now locked in until 2026. Coupled with forthcoming rises in national insurance, corporation tax and dividend rates the net impact for small business owners is a substantial and quite sneaky tax increase over the next few years.
The 2022/23 tax year in the UK runs from 6th April 2022 to 5th April 2023. Tax returns for this tax year are generally due by 31st January 2024. Here are some of the most common at-a-glance figures you might find useful for the tax year.
2022/23 Tax Rates for small businesses in the UK
- Tax Year: 6th April 2022 to 5th April 2023
- Tax Return Deadline: 31st January 2024
- Personal Allowance: £12,570 (visit this page)
- Basic Tax Rate: 20% (£12,571-£50,270)
- Higher Tax Rate: 40% (£50,271-£150,000)
- Additional Tax Rate: 45% (over £150,000)
- Personal Savings Allowance *: £1,000 (visit this page)
- Dividend Allowance: £2,000 (visit this page)
- Dividend Rate *: 8.75%
- Trading Allowance: £1,000 (visit this page)
- Property Allowance: £1,000 (visit this page)
* For basic rate tax payers.
2022/23 National Insurance Rates for small businesses in the UK
- Class 2 Small Profits Threshold: £6,725
- Class 2 Lower Profits Threshold: £11,908
- Class 2 Rate per week: £3.15
- Class 4 Lower Profits Threshold: £11,909
- Class 4 NI Rate: 9.73%
- Class 4 Rate above £50,270: 2.73%
- For full details and past rates visit this page
Other useful information for small businesses in 2022/23 tax year
- VAT threshold: £85,000 turnover
- Standard VAT rate: 20%
- Corporation Tax rate: 19% (visit this page)
- Annual Investment Allowance: £1m
- Cash Basis Limit: £150,000 turnover (visit this page)
- Payment on Account threshold: £1,000 total tax bill (visit this page)
- State Pension Age: 67 (visit this page)
- Qualifying Years Required for Full State Pension: 35 (visit this page)
Please note that the above information is just intended as an ‘at-a-glance’ quick summary summary. Please visit the relevant links for full details. You should always seek professional guidance from a qualified accountant.
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Last Updated on 29 January 2023 by Andy Mac