Introduction
ATV Tax Tips Dec includes a review of the government’s Autumn Tax Statement and provides an overview of the changes to the tax system announced in the UK government’s Autumn Tax Statement. We discuss the changes to the research and development tax relief scheme, which will no longer be as generous for small and medium-sized businesses. The uplift will be reduced from 130% to 86%, meaning that businesses spending £100,000 on research and development will only receive an additional £86,000 for corporation tax purposes. The reduction in tax credits could significantly impact businesses in the early stages of product development, and they will need to consider the changes when forecasting their cash flows.
We also highlight changes to income tax, with the threshold at which the top rate of income tax is paid being reduced from £150,000 to £125,000. The dividend allowance will also be reduced from £2,000 to £1,000 from April 2023, and then to £500 from April 2024. We’ve looked at some examples of the impact of these changes on different income levels, with higher earners facing a significant increase in their income tax liability.
This episode serves as a useful resource for business owners and individuals looking to understand the impact of the Autumn Tax Statement on their finances. It provides clear explanations of the changes and their implications, including how they will impact businesses’ cash flows and individuals’ income tax liabilities. The examples given are helpful in illustrating the potential impact of the changes on different income levels. The speaker’s clear and concise presentation style makes the video accessible to a wide audience, even those without a background in tax law. A valuable resource for anyone looking to understand the recent changes to the UK tax system and how they may affect their finances.
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