Autumn Budget 2021 | Update for Businesses
In the Autumn Budget for 2021, the Chancellor has confirmed important updates for businesses.
Although these changes were announced before the Autumn Budget in 2021, we have received confirmation that the Corporation Tax increase to 25% will be going ahead as planned in April 2023. This will apply to companies with profits of more than £250,000. Marginal relief will be available for profits between £50,000 and £250,000. The smallest companies with profits up to £50,000 are set to keep the current corporation tax rate of 19%.
The government previously announced an increase to national insurance rates of 1.25%. This increased tax rate will also apply to dividend drawings. The 1.25% increase will come into effect in April 2022.
Plans to expand Making Tax Digital to Self-employed individuals and landlords (Income Tax & Self-assessment) have also been confirmed. The new legislation will require self-employed individuals earning £10,000 or more in turnover to make quarterly MTD submissions to HMRC from April 2024.
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Helpful Links:
MTD ITSA delayed one year until April 2024 - https://questions-statements.parliame...
Corporation Tax increase Policy Paper - https://www.gov.uk/government/publica...
Dividend Tax increase Policy Paper - https://www.gov.uk/government/publica...
National Insurance Increase Policy Paper - https://www.gov.uk/government/publica...
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