TAX, TAX AND MORE TAX!

New legislation in 2022...

Some new legislation is heading our way in 2022, that will actually affect everyone’s life one way or another. Some key changes for businesses include a number of monetary hikes via various tax routes, despite the Government’s manifesto promise not to do so back in 2019 - but then again that was the year that changed the world.

National Insurance will be one of the biggest things noticed by many, as it will rise by 1.25% in the new financial year. A £12bn fiscal gain for the economy is expected to be generated which has been earmarked for health and social care.

The change will see NI tax bands rise to 6.78% and 10.51%. Furthermore, National Insurance contributions made by companies to their employees, will also be increased, with an obligatory 2.5% tax rise.

It has been stated by some that businesses will offset this by not raising wages which could lead to decisions not to hire. Additionally, dividend taxes have been increased by 1.25%

It’s an expensive time all round, as from 2023, some tax increases will be divided into a new tax that will see all people, including those over 65 who do not pay National Insurance being taxed.