Reversal of National Insurance rate increase confirmed
There are plenty of rumours about what tax measures might be included in tomorrow’s mini-Budget. However, a widely-expected change to the NI rates has already been confirmed. What do we know?
The new Prime Minister’s leadership campaign included a very vocal pledge to scrap the NI rate increase that took effect in April 2022. As a result, it is not surprising that this has now been confirmed. The NI rates for primary and secondary Class 1, Class 1A and Class 4 NI will all reduce by 1.25% from 6 November 2022, reverting to the levels they were at for 2021/22. The news article on GOV.UK indicates that the increases in thresholds, including the primary threshold, that took effect in July will be retained.
The article also says that it is “expected” that the Chancellor will reverse the increase to dividend tax rates, albeit not until April 2023.
Related Topics
-
HMRC launches tax advisor register checker tool
HMRC has launched a new online tool allowing taxpayers to check whether their tax advisor is registered with it. The checker has been introduced shortly before new standards for tax advisors come into force. What does this mean for taxpayers and agents?
-
Could a special method increase your profits?
Your business has used the same partial exemption method for many years. Is it time to consider if a different method will improve your input tax recovery?
-
EVs and the tax-free mileage allowance
You’re a director and regularly use your electric vehicle (EV) for business journeys. Your company provides a workplace charger which is free for all staff to use. Does the origin of the electricity impact your claim for tax-free mileage?