![\"Personal](\"http:\/\/my-brains.co.uk\/jackross\/wp-content\/uploads\/2022\/04\/jeshoots-com-LtNvQHdKkmw-unsplash-scaled.jpg\")
<\/a><\/figure><\/div>\n\n\n\nSome of the changes have been public knowledge for months now. Many of the rises have been anxiously awaited as the country continues to face a cost-of-living squeeze.<\/p>\n\n\n\n
But the Government is intent on decreasing the national deficit and inflation after over \u00a3400 billion of quantitative easing by the Bank of England and global supply chain issues.<\/p>\n\n\n\n
These changes add to the cost of living for many families. Therefore, it\u2019s more important than ever to know what changes have been made so you can prepare.<\/p>\n\n\n\n
Here are the key personal taxes and tax changes you need to know in 2022\/23.<\/p>\n\n\n\n
<\/a>Income tax and personal allowance<\/h3>\n\n\n\nIn Spring Budget 2021, Chancellor Rishi Sunak announced that the income tax thresholds, would be frozen until 2026. This included the personal allowance.<\/p>\n\n\n\n
This means income tax and the personal allowance will remain as they were in the 2021\/22 tax year:<\/p>\n\n\n\n
- personal allowance (tax-free) –\u00a0 up to \u00a312,570 of income<\/li>
- basic rate tax (20%) \u2013 further income up to \u00a337,700<\/li>
- higher rate tax (40%) \u2013 further income up to \u00a3150,000<\/li>
- additional rate tax (45%) \u2013 income above \u00a3150,000.<\/li><\/ul>\n\n\n\n
How much income tax you pay in each tax year depends on how much of your income is above your personal allowance and how much falls within each tax band. Income above \u00a3100,000 will also see a reduction in your personal allowance.<\/p>\n\n\n\n
The Government usually increases the bands and personal allowances with inflation to account for wage growth.<\/p>\n\n\n\n
But by freezing the personal allowance and thresholds for the next four years any extra income individuals get may get taxed more harshly than had income tax continued to move with inflation \u2013 critics often refer to freezes as a \u201cstealth tax\u201d.<\/p>\n\n\n\n
The income tax freeze is expected to raise an additional \u00a36bn.<\/p>\n\n\n\n
On the other hand, the Scottish income tax thresholds, are set to rise from April 2022. Although the personal allowance remains frozen.<\/p>\n\n\n\n
Income tax is devolved in Scotland, therefore there are different rates and thresholds to the other UK nations.<\/p>\n\n\n\n
Specifically, the thresholds for the starter, basic and intermediate bands are increasing.<\/p>\n\n\n\n
How much income tax you pay in each tax year depends on how much of your income is above your personal allowance and how much falls within each tax band. Income above \u00a3100,000 will also see a reduction in your personal allowance.<\/p>\n\n\n\n
The Government usually increases the bands and personal allowances with inflation to account for wage growth.<\/p>\n\n\n\n
But by freezing the personal allowance and thresholds for the next four years any extra income individuals get may get taxed more harshly than had income tax continued to move with inflation \u2013 critics often refer to freezes as a \u201cstealth tax\u201d.<\/p>\n\n\n\n
The income tax freeze is expected to raise an additional \u00a36bn.<\/p>\n\n\n\n
On the other hand, the Scottish income tax thresholds, are set to rise from April 2022. Although the personal allowance remains frozen.<\/p>\n\n\n\n
Income tax is devolved in Scotland, therefore there are different rates and thresholds to the other UK nations.<\/p>\n\n\n\n
Specifically, the thresholds for the starter, basic and intermediate bands are increasing.<\/p>\n\n\n\n