At a glance
- A summary of some of the highlights taken from the Autumn Statement 2022.
Key points – Employment Taxes
The additional rate threshold, above which an individual pays income tax at 45%, is being reduced from £150,000 to £125,140 from 6 April 2023, representing an income tax increase for those earning above £125,140.
Other income tax and employee NIC thresholds are being frozen for an additional two years until April 2028, they were already frozen until April 2026. In particular an individual’s income tax personal allowance will remain frozen at £12,570. This, in effect, represents an income and NIC increase for those whose earnings increase above those thresholds, as compared to the position they would have been in had those thresholds increased with wages.
The employer NIC threshold is being frozen at £9,100 until April 2028. However, the employer allowance (which allows eligible employers to reduce their NIC liabilities) is being retained at the current level of £5,000.
Should you have any queries on the Autumn Statement, please reach out to your usual UK tax contact or one of the following: David Smith, Richard Johnson, Beth Simmonds.
More to explore
