Tax brackets 2022/23 – A guide to tax rates for the 2022/23 tax year

Tax brackets have been updated following the 2022 Spring Budget on 23 March 2022.

For the 2022/23 tax year, once again many rates remained unchanged, including Inheritance Tax and Capital Gains Tax. There were also some important changes you should be aware of, notably an extension to to the time in which Super Deductions apply to Capital Allowances (and can offer significant tax savings).

Below are the key tax brackets and tax rates that apply for the tax year 2022/23:

Tax Brackets for the tax year 2022/23

Income Tax Brackets

Income tax rates and bands

2022/23 2021/22 
BandRateBandRate
£0 – 37,70020%£0 – 37,50020%
£37,701 – 150,00040%£37,501 – 150,00040%
Over £150,00045%Over £150,00045%

Please note: In Scotland and Wales, income tax rates on income other than savings and dividend income have been devolved

Savings Income tax allowances

2022/23 and 2021/22
Savings allowance basic rate£1,000
Savings allowance higher rate£500

Please note: A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.

Dividend Income tax brackets

2022/232021/22
Dividend allowance£2,000£2,000
Dividend ordinary rate8.75%7.5%
Dividend upper rate33.75%32.5%
Dividend additional rate39.35%38.1%

Tax Brackets for Income Tax Reliefs

2022/232021/22
Personal allowance£12,570£12,570
Personal allowance income limit£100,000£100,000
Marriage allowance Transferable between certain spouses where neither pay tax above the basic rate£1,260£1,260
Married couple’s allowance (relief given at 10%)£9,415£9,125
Either partner born before 6 April 1035
Minimum amount£3,640£3,530
Income limit£31,400£30,400
Blind persons allowance£2,600£2,520

Car, Van and Fuel Benefit

2022/23
CO2 emissions g/km% of list price taxed
02
1 – 50
Electric Range – 130 or more2
Electric Range – 70 – 1295
Electric Range – 40 – 698
Electric Range – 30 – 3912
Electric Range – under 3014
51 – 5415
For every extra 5+1
160 and above37

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

2022/23
Car fuel benefit£25,300
Van benefit£3,600
Van fuel benefit£688

National Insurance

The rate of NI contributions you pay will change for one year From April 2022, increasing by 1.25 percentage points to be spent on the NHS and social care across the UK.

At Spring Statement 2022 an increase in National Insurance thresholds for the 2022 to 2023 tax year was announced. These changes will take effect form July 2022.

Tax brackets – 2022/23 Class 1 (employed) rates

For employees

For employees 
Up to £1900%
£190.01 – £96713.25%
Over £9673.25%

For employers

For employers 
Up to £1750%
Over £17015.01%

Please note: Entitlement to contribution-based benefits for employees retained for earnings between £123 and £190 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £967 per week (this is £242 starting 6 June 2022).

Class 1A (employers)On employee taxable benefits15.05%
Class 1B (employers)On PAYE Settlement Agreements15.05%
Class 2 (Self-employed)Flat rate per week

Small profits threshold

£3.15

£11,908 per annum

Class 3 (voluntary)Flat rate per week£15.85
Class 4 (self-employed)On profits between £11,908 – £50,270

Excess over £50,270

10.25%

3.25%

Stamp Duty Land Tax

Please note: Land and buildings in England and N. Ireland. Residential rates may be increased by 3% where further residential properties are acquired.

Residential Stamp Duty rates
Property or lease premium or transfer valueSDLT rate
Up to £125,000Zero
The next £125,000 (the portion from £125,001 to £250,000)2%
The next £675,000 (the portion from £250,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%

First-time Buyer relief may be applicable to residential purchases up to £500k

Non-residential Stamp Duty rates
Property or lease premium or transfer valueSDLT rate
£0 – £150,000Zero
£150,001 to £250,0002%
Over £250,0005%

Capital Gains Tax

Capital Gains Tax2022/232021/22
Individuals
Exemption£12,300£12,300
Standard rate10%10%
Higher/additional rate20%20%
Trusts
Exemption£6,150£6,150
Rate20%20%

Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.

Business Asset Disposal Relief 

The first £1m of qualifying gains are charged at 10%.

Inheritance Tax Brackets

Death rateLifetime rateChargeable transfers 2022/23 and 2021/22
NilNil£0 – £325,000 (nil rate band)
40%20%Over £325,000

A further nil rate band of £175,000 may be available in relation to current or former residences.

Corporation Tax Brackets

RateRate
Year to 31.02.2319%Year to 31.03.2219%

Capital Allowances

Corporation tax super-deduction on certain plant and machinery (up to 31.03.2023)130%
First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km100%
Corporation tax FYA on long-life assets, integral features of buildings, etc. (up to 31.03.2023)50%
Annual Investment Allowance (AIA)£1,000,000 (£200,000 from 01.04.2023) – excludes cars

Writing Down Allowance

Long-life assets, integral features of buildings, cars over 50g/km6%
Other plant and machinery18%
Structures and Buildings Allowance3%

Pensions

2022/232021/22
Lifetime Allowance Limit1,073,100£1,073,100
Annual Allowance Limit£40,000£40,000
Money Purchase Annual Allowance£4,000£4,000

Value Added Tax

From 01.04.22From 01.04.21
Standard rate20%20%
Reduced rate5%*5%
Annual Registration Limit£85,000£85,000
Annual Deregistration Limit£83,000£83,000

*12.5% for hospitality and tourism from 1 October 2021 – 31 March 2022.

Selected Rates

Weekly benefit2022/232021/22
Basic State Pension£185.15£179.60
Old State Pension£141.85£137.60
Statutory pay standard rates2022/232021/22
Average weekly earnings£123 or over£120 or over
Sick Pay£99.35£96.35
Maternity/Adoption Pay£156.66£151.97
Shared Parental Pay£156.66£151.97
Paternity Pay£156.66£151.97

National Living Wage and National Minimum Wage

AgeNLW21 – 2218 – 2016 – 17Apprentices
From 1 April 2022£9.5£9.18£6.83£4.81£4.81

Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 23 and over

Key Tax Dates and Deadlines 2022/23

April 2022

  • 05/04/22: The 2021/22 tax year ends
  • 06/04/22: The 2022/23 tax year begins

July 2022

  • 31/06/22: The second Payment on Account (POA) re Income Tax 2021/22
  • 05/06/22: The deadline for Self Assessment registration re notifying chargeability of Income Tax/Capital Gains Tax for the 2021/22 tax year

October 2022

  • 19/10/22: The deadline for postal payments re CIS, Class 1 B NICs and PAYE to HMRC
  • 22/10/22: The deadline for electronic remittance re CIS, Class 1 B NICs and PAYE to HMRC
  • 31/10/22: The deadline for HMRC to receive postal submission re Self Assessment tax returns for tax year ended 05/04/22

December 2022

  • 31/12/2022: The due date for limited companies to file company accounts with Companies House 31 March 2022 year end

January 2023

  • 14/01/2023: The income tax due date for CT61 period to 31/12/22
  • 31 /01/2023: The deadline for filing Self Assessment tax returns for the tax year ended 05/04/2022 and 2021/22 CGT
  • 31/01/2022: The balancing payment of tax due for 2021/22 and the first Payment on Account for Income Tax for 2022/23

April 2023

  • 05/04/23: The 2022/23 tax year ends
  • 06/04/23: The 2023/24 tax year begins

*Please note:

For residential properties sold on or after 27 October 2021, Capital Gains Tax needs to be reported to HMRC and paid within 60 days of completion of a sale. Previously, for the period on or after 6 April 2020, this was within 30 days of completion.

Please note: all rates quoted are for guidance only and whilst are believed to be correct as of 6 April 2022. These rates may be subject to change. No responsibility for loss occasioned by any person acting/refraining from action because of this information can be accepted.

Alexander & Co – Expert tax advice

With offices in Manchester city centre our chartered tax advisors and chartered accountants are ideally placed to advise and assist individuals and businesses across the UK and further afield.

To speak to a corporate or personal tax advisor, please email our tax team today at info@alexander.co.uk or complete our online enquiry form and we will be in touch shortly.

With offices in Manchester city centre, our chartered tax advisors and chartered accountants are ideally placed to advise and assist individuals and businesses.

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