Tax changes coming into force in April 

A range of tax changes will come into effect from April:

• Corporation tax: rises to 25% for companies with annual profits of over £250,000. Those with profits of £50,000 or less will remain at 19% with a marginal relief system in between.
• Business rates: rateable values will reflect the property market as of 1st April 2021. The Scottish Government plans to freeze the business rates poundage and ‘reform and extend eligibility for the Small Business Bonus Scheme (SBBS).'The threshold for 100% relief will fall to £12,000, and the upper rateable value for individual properties to qualify for SBBS will rise to £20,000. The Scottish Government will also offer Small Business Transitional Relief for properties that lose SBBS or rural rates relief. The increase in the rates liability will be capped at £600 in 2023-24.
• IR35: HMRC is expected to ramp up compliance.
• Income Tax: the personal allowance remains at £12,570 with 20% payable on earnings of £12,571 - £50,270, 40% on £50,271 - £150,000, and 40% on £150,000+. In Scotland, a 42% rate will come in on £43,663 -£125,140 and 47% on £125,140+.
• Dividend tax rates: annual dividend allowance will fall to £1,000 in April 2023 and to £500 from April 2024.
• Making Tax Digital: the extension has been pushed back and will now apply to earnings from £50,000+ from April 2026 and £30,000- £50,000 from April 2027.