This calculator is for the 2022 announcements, for November 2023's Autumn Statement, click here.
In the weeks leading to today's Autumn Statement, we were promised tough decisions and told to brace. For Jeremy Hunt, his first major outing since becoming the new Chancellor, it involved tax rises, stealth tax rises and spending cuts.
Use the calculator below to see how much tax you will pay on earnings from April 2023:
In summary the UK is confirmed to be in recession with a 1.3 percent contraction next year. :
- The personal allowance will remain at the current level (£12,570) for a further two years. It was planned to rise with inflation from 2026 but will now not be unfrozen until 2028.
- Tax thresholds for the higher rate band and NICs will also remain frozen until 2028. This and the above stealth tax will use the fiscal drag effect to bring more people into higher tax bands and reduce the take home pay on any inflation driven pay rises.
- Top rate tax band to be lowered from the current £150,000 to £125,140. This aligns its introduction with the point at which the personal allowance is totally removed by tapering for those earning over £100,000. The top rate of tax remains at 45 percent.
- The dividend allowance is to be reduced from the current £2,000 to £1,000 from April 2023 and then to £500 from April 2024.
- The capital gains annual exempt amount will be cut from £12,300 to £6,000 from April 2023 and then £3,000 from April 2024.
- Energy firms windfall tax rises from the current 25 percent to 35 percent. The support scheme in place to reduce the price cap is confirmed to continue from April 2023 but at a lower level of support. The current price cap is being held at £2,500 with intervention, but from April it will rise to £3,000. The government says this would be £3,700 without help.
- Additional energy bill support for the vulnerable with an additional £900 for means-tested benefit claimants, £150 for people with disabilities and £300 extra for pensioners.
- Pensioners are also to continue to benefit from the triple-lock on pensions. Pensions will rise by the record high inflation level from April next year. It will be based on the 10.1 percent inflation rate from September.
- The inheritance tax threshold to remain at current level of £325,000.
- Electric vehicles are victims of this budget with not only the low company car tax BIK rates coming to an end from 2025, but for the first time EV's will pay VED from 2025.
- Means-tested benefit including tax credits, universal credit will rise next year by September's 10.1% inflation figure, at a cost of over £11 billion to the Treasury.
- Living wage will rise from £9.50 an hour to £10.42 from April 2023 - this applies to people aged over 23. A rise of 9.7 percent.
- Employment allowance for employers (a discount on Employers' NICs) will be raised to £5,000 until March 2026.
Our calculators and tools have now been updated and are ready for the April 2023 changes announced today.
