Chancellor U-turns on top rate of tax
The decision to scrap the 45% tax rate has been widely criticised amid a cost-of-living crisis. This morning the Chancellor has announced a U-turn. What's the latest?
The Chancellor has confirmed that the tax cut will not go ahead, due to the distractions this policy has caused. From 6 April 2023 those earning over £150,000 will continue to pay the top rate of 45% income tax. However, due to other planned tax cuts, those with income over £150,000 will pay just 38.1% income tax on dividends from 6 April 2023 (currently 39.35%), meaning there will still be an incentive (albeit a smaller one) to delay dividends until on or after 6 April 2023.
The Chancellor is set to announce his medium-term fiscal plan on 23 November.
Related Topics
-
Deadline to issue P60s
-
HMRC launches new R&D advance assurance process
HMRC has introduced a new advance assurance process for research and development (R&D) tax relief claims, aimed at giving eligible companies greater certainty before submitting a claim. What does the new process involve?
-
Dodging tax and NI on 2025/26 benefits
If you had taxable benefits in kind in 2025/26 then you’ll have to pay income tax on the value. Your company also has to pay 15% NI. Now the tax year has passed is there any way you can reduce or eliminate this tax liability?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.