The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The Government spending plans are to be set out at the Spending Review on 27 October 2021 alongside an Autumn Budget.
The Chancellor launched the Spending Review 2021 (SR21) on 7 September 2021. It will conclude on 27 October 2021 alongside an Autumn Budget and set out the Government’s spending priorities for the Parliament.
The three-year review will set UK Government departments’ resource and capital budgets for 2022/23 to 2024/25 and the devolved administrations’ block grants for the same period.
The Office for Budget Responsibility (OBR) will prepare an economic and fiscal forecast which will be presented alongside the Autumn Budget and SR21 on 27 October 2021.
HMT has opened a process for the Spending Review and Autumn Budget to allow external stakeholders to submit representations. Representations can be submitted online by 30 September.
To help fund the Government’s social care plans, NIC rates will increase by 1.25% and tax on dividends will increase by 1.25% from April 2022.
The Government will introduce a UK-wide 1.25% health and social care levy based on national insurance contributions (NIC) ringfenced to fund the investment in health and social care.
The levy will be effectively introduced from April 2022, when employer and employee Class 1 NIC and Class 4 NIC will increase by 1.25%. From April 2023, once HMRC’s systems are updated, the 1.25% levy will be formally separated out and will also apply to individuals working above state pension age, and NIC rates will return to their 2021/22 levels. Revenues will be ringfenced for health and social care. Existing NIC reliefs for employers employing people under 21, apprentices under 25, certain veterans and for employers in freeports will apply to the levy.
The levy will be administered by HMRC and collected via PAYE and income tax self assessment and will be legislated for shortly.
The Government will also legislate in the
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