LSCA Business
UK Budget – Autumn 2021 – A Stronger Economy for the British People Personal Tax, Pensions and Employment The National Living Wage will be increased to £9.50 an hour, effective from 1 April 2022, for individuals aged 23 and over. A reduction in the taper rate that applies in Universal Credit from 63% to 55% by 1 December 2021. As previously announced on 7 September 2021, a new 1.25% Health & Social Care levy (the Levy), will be introduced and apply to Class 1 and Class 4 National Insurance Contributions, for both main and additional rates. This will initially be introduced from April 2022 as a rise in National Insurance for all working-age employees, employers and the self-employed. From April 2023, once HMRC’s systems are updated, it will be treated as a separate tax and also apply to the earnings of individuals working above State Pension age. NIC rates will return to their 2021-22 levels. The dividend rates will also be increased by 1.25% from 6th April 2022, making the ordinary rate 8.75%, the upper rate 33.75% and the additional rate 39.75%. The ‘Triple Lock’ for the State Pension has been temporarily suspended, and for 2022-23 only, the increase will be the higher of CPI or 2.5%. 40
Corporate Tax Annual investment allowance of £1m to be extended to March 2023. R&D to be reformed to support modern research methods including data and cloud costs from April 2023. Further details will be announced later in the Autumn. Museums and Galleries Exhibition Tax Relief will be extended until 31 March 2024. From 27 October 2021 the rates of Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibition Tax Relief (MGETR) will increase:From 27 October 21, the headline rates for the TTR and MGETR will temporarily increase from 20% (for non-touring productions) and 25% (for touring productions) to 45% and 50%, then reduce to 30% and 35% on 1 April 2023, and expiring on 1 April 2024, returning to 20% and 25%. For MGTER, the relief will expire on 1 April 2024 and no expenditure from this date will be eligible for relief. From 27 October 2021 the rates of Orchestra Tax Relief will increase from 25% to 50%, reducing to 35% from 1 April 2023 and returning to 25% on 1 April 2024.
