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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, of note National Insurance and Dividend tax rates all to increase by 1.25% from 6th April 2022.
  • 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.
  • Enhanced Capital Allowances for Companies only from 1st April 2021 to 31st March 2023. A 130% super deduction for expenditure on Plant and Machinery ordinarily qualifying for the 18% writing down rate, plus a first year allowance of 50% on most new Plant and Machinery ordinarily qualifying for the 6% special writing down rate.