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Rishi’s second budget of 2021 or was it more of a spending review?

05.11.2021

Business

The Chancellor presented his Autumn Budget last Wednesday. If you listened in, other than the extension from 30 days to 60 days for Residential Property Gains, it was light on headline grabbing tax announcements but there was still plenty of detail to work through – some of which we knew about already. 

 

Some of the key messages we’ve taken on board are
 

More immediate is the increase, from April 2022, to
 

This means that the actual increase for those who typically extract a salary and dividend up to the basic rate tax band of £50,270 from their company will see an increase in their NIC and Dividend Tax liability of over 12% (although some of this, from April 2023, may be relieved at a higher Corporation Tax rate). 

The NIC increases will be rebranded as ‘The Health and Social Care Levy’ from April 2023 which working pensions will also be required to pay and current NIC rates will be reinstated.    

We are expecting the Finance Bill, which will cover many of the measures announced as well as updated legislation on basis period reform, to be published this week. 

If you are anxious to understand more about how the basis period reform will affect your future tax bills or how you can lessen the affect of the of the NIC and Dividend Tax increases by extracting income from your company before 5 April 2022 and/or introducing ‘salary sacrifice’ arrangements, please do not hesitate to contact one of us on 01223 810100.   

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