Tax Diary December 2022/January 2023

1 December 2022 – Due date for Corporation Tax payable for the year ended 28 February 2022. 19 December 2022 – PAYE and NIC deductions due for month ended 5 December 2022. (If you pay your tax electronically the due date is 22 December 2022). 19 December 2022 – Filing deadline for the CIS300 monthly […]

National Living Wage changes from 1 April 2023

Employers will need to update their systems to reflect the changes in the National Living and Minimum Wage rates from 1 April 2023. They are: Increasing the National Living Wage for those aged 23 and over by 9.7% to £10.42 an hour; Increasing the rate for 21–22-year-olds by 10.9% to £10.18 an hour; Increasing the […]

Uprating benefits and cost of living payments

Changes to these support payments were announced in the Autumn Statement last month. They include:   State Pension – will increase in line with inflation. Cost of living payments – the government will provide households on means-tested benefits with an additional £900 Cost of Living payment in 2023-24. Pensioner households will receive an additional £300 […]

Capital Gains planning

Readers may have noted that the Chancellor announced a significant reduction in the annual Capital Gains Tax allowance, currently £12,300, from April 2023.   It is reducing to £6,000 from April 2023 with a further reduction to £3,000 from April 2024.   Taxpayers who are contemplating the disposal of a chargeable asset next year, which […]

Fiscal drag

What is fiscal drag? The Oxford dictionary defines it as: ‘The deflationary effects of a progressive taxation system on a country’s economy. As wages rise, a higher proportion of income is paid in tax’ The recent comments made by the Chancellor in the Autumn Statement, froze most Income Tax allowance and rates at current levels […]