{"id":2503,"date":"2021-10-04T12:31:43","date_gmt":"2021-10-04T11:31:43","guid":{"rendered":"https:\/\/kirkwoodwilson.co.uk\/?p=2503"},"modified":"2021-10-04T12:31:43","modified_gmt":"2021-10-04T11:31:43","slug":"the-changing-face-of-the-uk-tax-sphere","status":"publish","type":"post","link":"https:\/\/kirkwoodwilson.co.uk\/the-changing-face-of-the-uk-tax-sphere\/","title":{"rendered":"The Changing Face of the UK Tax Sphere"},"content":{"rendered":"\n
As accountants and business advisers, we\u2019re used to keeping on top of the ever-changing UK tax changes in legislation within the UK. The landscape has evolved even more rapidly over the last 18 months since the COVID pandemic swept across the world.<\/em><\/p>\n\n\n\n We\u2019re accustomed to annual amendments to the personal allowance and capital gains tax allowance thresholds being the most commonly occurring changes we see. However, 2020 brought VAT deferrals, the furlough scheme and self-employed grants, all of which had an impact on the tax system in some way.<\/em><\/p>\n\n\n\n HMRC has a roadmap on which it plans to make further UK tax changes across the board over the coming years. We\u2019ll discuss some of these below in our updated UK tax guide.<\/em><\/p>\n\n\n\n The government has recently announced an increase to both NI rates and dividend tax rates from 6 April 2022. The planned 1.25% increase to both taxes will go ahead and will affect people from all walks of business.<\/p>\n\n\n\n Employed people will pay an additional 1.25% on any earnings over \u00a39,568. This change will also affect people who pay higher rate tax (earning over \u00a350,270) and additional rate tax (those who earn above \u00a3150,000).<\/p>\n\n\n\n Self-employed people will also be subject to the change, paying an additional 1.25% NI over \u00a39,568.<\/p>\n\n\n\n People who earn income via dividends will also be affected by the 1.25% rise at all levels of income. <\/p>\n\n\n\n The table below should help explain the changes:<\/p>\n\n\n\nUpdates to National Insurance (NI) and Dividend Tax Rates<\/h2>\n\n\n\n