2023 has seen changes to Corporation tax and the National Living Wage. Corporation tax is a tax based on a company’s profits and is currently set at 19%.
Since April 1st 2023, it has been increased to 25% for companies with profits over £250,000, whereas for companies with profits under £50,000, it will remain at 19%.
For those with profits in between the two thresholds, the rate is at 25% but is reduced by marginal relief.
The government has put this measure in place to raise revenue and fund public services.
The National Living Wage is the minimum wage for people over 25.
It’s currently set at £9.50 an hour, but from April 1st, it will be increased to £10.42 an hour, giving those in low-paying jobs a much-needed boost in their wages.
This change is intended to reduce inequality and make life more equitable for those on the lowest incomes.
Why the NLW and Corporation changes?
Both corporation tax changes and the National Living Wage increase in 2023 are part of a wider government effort to create a fairer society and promote economic growth.
By ensuring businesses pay their fair share of corporation tax while simultaneously increasing the wages of low-income workers, the government hopes to create a more prosperous and just society.
It’s an ambitious move, but one that will hopefully benefit everyone in the long run.
These corporation tax and National Living Wage changes in 2023 are a positive step forward and will go some way to creating a more equitable society.
It’s important that companies pay their fair share of corporation tax while making sure those on the lowest incomes have enough money to live comfortably.
These measures should help to create a fairer, more prosperous society.
P.S. Make sure to stay up-to-date with all the changes happening in 2023, so you make sure your business is compliant and compliantly benefiting from these corporation tax and National Living Wage changes!