Here are the most frequently asked questions we've received from accountancy clients in December 2022, with answers from the experts at Orange Genie Accountancy:

What rate of tax will I pay on my dividends from April 2023?

The tax free dividend allowance will reduce from £2,000 to £1,000 from April 2023. Any dividends then received in the basic rate tax bracket will attract 8.75% tax, those in the higher rate 33.75% and additional rate tax payers will pay at 39.35%.

I own a rental property, will Making Tax Digital (MTD) affect me?

MTD quarterly reporting will affect any Landlord with rental income of £10,000 or more in a tax period. We will be reaching out to our Landlord clients in the near future to guide you through the changes.

At what point will I start to loose my personal allowance from April 2023?

For every £2 earned over £100,000, £1 of Annual allowance is lost. This has not changed, however the point at which additional rate tax applies is being reduced from £150,000 to £125,140 and at this level of income, no personal allowance is available.