Basic rate taxpayers
The Government had originally planned to introduce a 1% reduction in the basic rate of income tax in April 2024, however it was announced in the Growth Plan that the reduced rate of 19% will apply from April 2023, one year earlier than expected.
The current basic rate of income tax of 20% has applied since 2008/09 and following the announcement on 17th October, will remain at 20% for the foreseeable future.
Additional rate taxpayers
As part of the Government’s plan to reduce taxes, it had planned to also remove the additional rate of income tax of 45% from April 2023.
However, on 3rd October the plans were dropped following widespread outcry from the public and MPs, with the then Chancellor Kwasi Kwarteng stating: “The abolition of the 45pc rate had become a distraction from our mission to get Britain moving.
“Our focus now is on building a high-growth economy that funds world-class public services, boosts wages, and creates opportunities across the country.”
Date published 23 Sep 2022 | Last updated 20 Oct 2022
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.