Spring Statement 2022
With an ongoing energy crisis, high inflation and global uncertainty, Chancellor Rishi Sunak has announced his Spring Statement. The key points of note have been included below and are based on information currently available.
As always, we will keep you up-to-date with further details as they are announced.
For more information, please click here to download our Spring Statement Summary which goes beyond the key announcements and looks at these changes and how they will have an impact upon you, your business and your personal finances.
Key Announcements for Individuals
- The National Insurance (NI) Primary Threshold and Lower Profits Limit will increase from £9,880 to £12,570 from July 2022. This aligns both the Personal Allowance and National Insurance Threshold, meaning that from July employees will be able to earn up to £12,570 without paying any tax.
- For those who are self employed, the Government has confirmed that those with profits between the Small Profits Threshold and Lower Profits Limit will continue to build up National Insurance credits, but will not pay Class 2 NICs. This means that self employed individuals earning up to £12,500 will be tax free.
- Don't forget...as previously announced prior to the Autumn Budget in 2021, the Health and Social Care Levy will come into effect from next month. Click here for a reminder for all you need to know.
- From April 2022, the Government will increase the National Living Wage from £8.91 to £9.50 per hour - that's a rise of 6.6%.
- The Government has also announced a fuel duty cut and a new 0% VAT rate on the installation of energy saving materials (such as solar panels).
From 2024: Income Tax Cut
The Chancellor has today announced that the Basic Rate will reduce from 20% to 19% in 2024 before the end of the current Parliament.
Key Announcements for Businesses
- Today the Chancellor announced that the Employment Allowance will increase from £4,000 to £5,000 from April 2022 - a tax cut worth up to £1,000 per employer.
- As previously advised, the temporary increase to the Annual Investment Allowance to £1 million was due to reduce on 1 January 2022 and today it has been reaffirmed that this will be extended until March 2023. There are also opportunities with the Super Deduction - let us know if you are planning on making any investment in plant and machinery and we'll work with you to make sure this is done in the most tax efficient way possible.
- To encourage businesses to make the move to digital technology, the Government is still providing support through the Help to Grow: Digital scheme, enabling business to benefit from up to £5,000 worth of investment.
Key changes affecting the Retail, Hospitality and Leisure sectors
- Eligible retail, hospitality and leisure businesses will benefit from a temporary Business Rates Relief of 50%.
We are here to help...
We are here to help in any way we can - please speak to your usual Jerroms contact on 0121 693 5000 (Solihull Office), 01527 833124 (Bromsgrove Office) or 01675 466344 (Coleshill Office).