The 2022 Autumn Statement at glance

The 2022 Autumn Statement at glance

The 2022 Autumn statement from the Government, the second in a couple of months, was delivered by Jeremy Hunt to a packed House of Commons on 17th November. As expected, there were some significant increases in the tax burden for many individuals and businesses, as well as spending cuts and freezes. Here’s a quick roundup of the changes likely to affect individuals and businesses.

Changes in the Autumn Statement 2022 affecting businesses 

Business taxation

• Employers NIC threshold remains until April 2028
• VAT registration threshold remains at £85,000 until 31 March 2026.
• The windfall tax on energy companies will be increased from 25% to 35% until April 2028.
• A temporary tax of 45% will be levied on electricity generating companies.

Allowances/exemptions

• R&D tax relief deduction will be reduced to 86% and the credit rate to 10%
• Electric vehicles will no longer be exempted from Vehicle Excise Duty from April 2025

Let’s turn to the changes in the Autumn Statement 2022 affecting individuals and households 



Personal finances

Income Tax/NI

• There are no changes to the income tax rate or employees NI which will remain at their current rate until April 2028. Basic rate and higher rate thresholds remain fixed for the next 5 years. The 45% tax threshold will reduce from £150, 000 to £125,140 meaning more people will pay more tax as allowances do not rise in line with wage increases.

Capital Gains Tax

• CGT allowance of £12,300 will reduce to £6,000 from 2023 and £3,000 from 2024.

Dividend Tax

• Dividend allowance reduces from £2,000 to £1,000 from April 2023 and £500 from 2024.

Stamp Duty

• Current stamp duty incentives remain in place until 2025.

Universal Credit

• 600,000 more people will be encouraged to meet with a work coach to increase the number of hours and earnings in an attempt to reduce the number of economically inactive working age adults.

State pension, benefits and tax credits

• Will all rise in line with inflation at 10.1%.

Energy bills

• Assistance to meet domestic energy bills will be reduced as the cap on unit prices will rise in April 2023 meaning the average household bill will increase from £2,500 to £3,000 a year.
• Extra payments for particularly vulnerable people include £900 for those on means-tested benefits, £300 for pensioner households and £150 for those on disability benefits.

Wages from 1 April 2023

• National Living Wage for those aged 23 and over: From £9.50 to £10.42 an hour from April 2023

Council tax

• £100 rise for a typical Band D property, which will council tax to over £2000.

Government spending plans

NHS: budget increased by £3.3bn for next 2 years

Education: budget increased by £2.3bn for next 2 years

Defence: budget maintained at 2% of national income

Overseas aid: budget maintained at 0.5% of national income for next 5 years

For more detailed Autumn Statement 2022 coverage, you can visit the BBC Website.

Getting support

To talk about how the Autumn Statement 2022 might affect you and your business, get in touch with David Masih, our client relationship partner. David can explain how our services can help you to optimise profits and retain employees during a no obligation chat today. Call 03330 067 123 or email info@onthegoaccountants.co.uk.