Personal tax changes and what they mean for you

Personal tax changes and what they mean for you

29th September 2022 | Fiona Gamwell

Government reverses Rishi’s rises to reduce burden on subbies and their households

The new Chancellor took aim at his Conservative predecessor’s policies and fired a torpedo at a raft-full of proposed tax rises. Kwasi Kwarteng’s mini-Budget offered a package of personal tax cuts designed to help increase prosperity and living standards.

Here is a summary of the government’s pledges:

  • Reducing NICs rates by 1.25 percentage points from November
  • Cancelling the Health and Social Care Levy coming in from April 2023
  • Bringing forward the 1 percentage point cut to the basic rate of income tax to April 2023, 12 months earlier than planned
  • Removing the additional rate of income tax from April 2023
  • Reversing the 1.25 percentage point increase in dividend tax rates from April 2023.

Ian Anfield, managing director of Hudson Contract, said: “Everybody will benefit from the cut in income tax, whether they are PAYE or sole trader.

“A lot of our clients have subbies on CIS and PAYE who will save from the scrapping of the care levy.

“Sole traders will benefit immediately from the averaging of National Insurance with Class 4 contributions going back to 9 per cent.

“For clients using Hudson Blue, the correct rates of national insurance will be implemented from November 6, so there will be no need for any backdated adjustments.”

Tags: Legislation
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