We have had some Autumn annoucments, some of which you may have heard on the news.

NI is increasing by 1.25% from April 2022.

• Because NI and personal income are generally decided 2years ahead, 22-23 is classed as a temporary rise.
• Don't think it will return to its previous level, it will be made permanent for 23-24; they are calling it "health and social levy".
• on a £30k salary, an employee will pay an extra £255 pa and the employer NI be an extra £264.
• Directors just over the NI threshold will have minimal impact

SELF-EMPLOYED NI

• Currently pay class 2 at a fixed rate per week and class 4 which is 9% of your profit above the employee NI threshold; currently £9500.
• The class 4 is set to rise by the same amount 1.25% to 10.25%.
• A person with profits of £25,000, their annual bill will rise by £194
• A person with profits of £50,000, their annual bill will rise by £506

DIVIDENDS

• Directors' and companies wont escape, dividend tax is also rising by 1.25% accross all bands.
• BR 7.5% (8.25%),
• HR 32.25% (33.75%)
• AR 38.1% (39.35%)(additional rate for income £150k+)
• Directors' with dividends of £40k taking their total income to £50k with their salary; their annual tax bill will rise by £500 (Couple £1000)
• Maximise what dividends you can in 2021-22, which i will do automatically on allocation dates when i work on accounts.