Tax changes from 6 April 2022.
The new tax year has started! Some of the changes have been public knowledge for months now and some of the rises have been anxiously awaited as the country continues to face a cost-of-living squeeze.
But the Government is intent on decreasing the national deficit and inflation after over £400 billion of quantitative easing by the Bank of England and global supply chain issues.
With these changes adding to the cost of living for many families, it’s more important than ever to know what changes have been made so you can prepare.
Here are the key personal taxes and tax changes you need to know in 2022/23.
Income tax and personal allowance
In Spring Budget 2021, Chancellor Rishi Sunak announced that the income tax thresholds, including the personal allowance, would be frozen until 2026.
This means income tax and the personal allowance will remain as they were in the 2021/22 tax year:
● personal allowance (tax-free) - up to £12,570 of income
● basic rate tax (20%) – further income up to £50,270
● higher rate tax (40%) – further income up to £150,000
● additional rate tax (45%) – income above £150,000.
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