Today marks the start of the 2022/23 tax year and we are giving a summary of the changes which come in with effect from today or in some cases from 1st April.
- From 1 April 2022, all VAT registered businesses are required to follow the Making Tax Digital rule submitting VAT returns using HMRC approved software. This will cause difficulty for some businesses who have continued to maintain manual records and we will be contacting all our clients in this situation in the coming weeks.
- The temporary 12.5% VAT rate for hospitality businesses has finished and from 1 April 2022, the standard rate of 20% applies once more.
- From 1 April 2022 until 31 March 2027, VAT on installations of energy saving materials such as solar panels, insulation and heat pumps, will be 0%.
- From today, National Insurance contributions for employers and employees alike increase by 1.25%.
- From today, the Employment Allowance allowing small businesses to reduce their National Insurance liability increases from £4,000 to £5,000.
- The National Minimum Wage and National Living Wage increase by 11.9% for apprentices and 6.6% for workers aged 23 or over.
- A new Plastic Packaging Tax has come into being. A charge of £200 per tonne of plastic packaging manufactured or imported into the UK that does not contain at least 30% recycled plastic, is now applicable. Exemption is given to manufacturers or importers of less than 10 tonnes of plastic packaging per annum.
If you would like to speak with us about how any of these changes impact your own situation, then please do not hesitate to contact us.