Autumn Statement 2022

Contents

1. Introduction
2. Income Taxes And Allowances
3. National Insurance Contributions Thresholds & Rates
4. Health, Social Care & Energy
5. Cost Of Living Support
6. Other

Introduction

On 17 November 2022, the Chancellor Jeremy Hunt, delivered the Autumn Statement. We’ve made a summary of the key measures impacting limited companies and individuals.

Income Taxes And Allowances

• On personal tax, the threshold at which the 45p rate (additional rate of income tax band) becomes payable will reduce from £150,000 to £125,140
  • Those earning £150,000 or more will pay just over £1200 more a year
• The dividend allowance will be cut from £2,000 to £1,000 from April 2023 and then to £500 from April 2024
• The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 from April 2023 and then to £3,000 from April 2024

National Insurance Contributions Thresholds & Rates

• The employers’ national insurance contributions threshold is frozen until April 2028
• The employment allowance will be retained at its new, higher level of £5,000 until March 2026

Health, Social Care & Energy

• There will be a £2.8bn funding increase for the social care sector
• The government will cap the increase in social rents at a maximum of 7% in 2023-24
• With regards to the NHS, the government will increase the budget for healthcare by £3.3bn
• Government will proceed with a new nuclear power plant at Sizewell C

Cost Of Living Support

• From April 2023, the national living wage will increase. The hourly rate will be £10.42 which represents an annual pay rise worth over £1,600 to a full-time worker
• In April 2023, the state pension will increase in line with inflation, an £870 increase.
• From April 2023, the government will continue the Energy Price Guarantee for a further 12 months at a higher level of £3,000 per year for the average household.
• Benefits will also rise in line with inflation

Other

• From April 2025, electric cars will no longer be exempt from Vehicle Excise Duty
• 600,000 more people on Universal Credit will be asked to meet with a work coach to increase hours or earnings
• Government will introduce a temporary 45% levy on electricity generators from 1 January
• On education, there will be an extra £2.3bn investment per year in schools
• Stamp duty cuts will stay in place until March 2025
• Public funding for Research & Development will be increased to £20bn by 2024/5