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Main items of interest to the majority of small businesses will be:

  • Personal allowances and national insurance rates, please view the tax data information page above.
  • Don’t forget the £1,000 a year in tax-free allowances for property or trading income available since April 2017.
  • The Corporation Tax rate is remaining at 19% until April 2023 with the proposal to increase to 25% for Profits over £250,000, Profits below £50,000 will remain taxed at 19%. A tapered rate will return for Profits between £50,000 and £250,000 to merge the two rates.
  • VAT registration limit to remain at £85,000 until April 2024 and the deregistration limit £83,000.
  • The rules for Class 2 NIC have changed, for the 2022/23 tax year you pay Class 2 NIC if your profits are above the Lower Profits Limit,(which is £11,908 in 2022/23). If your profits are below the Small Profits Threshold (£6,725 in 2022/23) then you can choose to pay Voluntary Class 2 NIC. If your profits from self-employment are between the Small Profits Threshold and the Lower Profits Limit then there is no Class 2 NIC to pay but you will be treated as making Class 2 NIC. This will mean you will be able to access entitlement to contributory benefits in the same way as if you had paid Class 2 NIC.