Tax Rates Centre
a summary of some of the essential tax rates, dates and figures for 2022/23.

Income Tax

Income tax rates (other than savings and dividend income)

2022/23 2021/22
Band of Taxable Income Rate % Band £ Rate %
0 – 37,700 20 0 – 37,700 20
37,701 – 150,000 40 37,701 – 150,000 40
Over 150,000 45 Over 150,000 45

 

Dividend income 2022/23 and 2021/22
Dividend ordinary rate 8.75% – 7.5%
Dividend upper rate 33.75% – 32.5%
Dividend additional rate 39.35% – 38.1%

The first £2,000 (£2,000 2021/22) of dividends are tax-free.

 

Personal allowance (PA)

2022/23 2021/22
Personal allowance £12,570 £12,570
Marriage allowance £1,260 £1,260
Blind person’s allowance £2,600 £2,520

Corporation Tax

Financial Year to 31 March 2023 31 March 2022
Corporation Tax rate 19% 19%

Value Added Tax

From 2022/23
Standard rate 20%
VAT fraction 1/6
Reduced rate 5%
Current Turnover Limits
Registration – last 12 months or next 30 days over £85,000
Deregistration – next 12 months under £83,000

Mileage Allowances

It is quite normal practice for employees to be reimbursed at a reasonable mileage rate for business use of their own vehicles. The income tax and national insurance contributions (NICs) position is as follows:

A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows:
Cars and vans:
on the first 10,000 miles in the tax year
on each additional mile above this		 45p per mile
25p per mile
Motorcycles 24p per mile
Bicycles 20p per mile

Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.

Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.

National Insurance Contributions

 

Class 1 Employee (primary)
Payable on weekly earnings of
Below £190 (lower earnings limit) Nil
£190.01 – £967 (upper earnings limit) 13.25%**
Above £967 3.25%**

** Over state pension age, the employee contribution is generally nil
Class 1 Employer (secondary)
Up to £175 (secondary threshold) Nil
Above £175 15.05%
Employment Allowance Up to £5,000 (per year)
Class 1A  15.05%
on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000
Class 1B  15.05%
on taxable PAYE Settlement Agreements
Class 2 (Self employed) £3.15 per week
Small profits threshold £6,725 per annum
Class 3  £15.85 per week
Class 4
Up to £11,908 Nil
£11,908.01 – £50,270 10.25%
Over £50,270 3.25%

Key Dates and Deadlines

Payment Dates
Income Tax and National Insurance Contributions
31 July 2023 2022/23 second payment on account
31 January 2024 2022/23 balancing payment, and
2023/24 first payment on account
31 July 2024 2023/24 second payment on account
31 January 2025 2023/24 balancing payment, and
2024/25 first payment on account
Corporation Tax
9 months and one day after the end of the accounting period (or by quarterly instalments if a large company)
Inheritance Tax
6 months after the end of the month of death.
Latest Filing/Issuing Deadlines – 2022/23 PAYE Returns
31 May 2023 Issue P60s to employees.
6 July 2023 P11D and P11Db – also issue copies to employees
Deadline for employment related securities returns
2023 Self-Assessment Tax Return (SATR)
31 January 2024 Last filing date – SATR Paper Version

Stamp Taxes

When you buy shares, you usually pay a tax or duty of 0.5% on the transaction. If you buy shares electronically Stamp Duty Reserve Tax (SDRT) is payable. For shares purchased using a stock transfer form, you will pay Stamp Duty if the transaction is over £1,000.

2022/23 Tax Rates Centre is for guidance only and professional advice should be obtained before acting on any information contained as no responsibility can be accepted for loss occasioned as a result of action taken or refrained from in consequence of its contents.

Call us on +44 7802 735478 to discuss your requirements or complete your contact details here and we will be in touch.

Our contacts
Phone

+44 7802 735478

Email

sabina@dcsaccounts.co.uk

Contact form

Reload Captcha

logo