2022 Spring Statement Summary
The Chancellor of the Exchequer, Rishi Sunak, unveiled his Spring Statement on 23rd March 2022.
With prices rising 6.2%, the fastest for 30 years, the Chancellor has made cuts to help ease the cost of living demands placed on households.
Key areas of the Government’s tax plan for the UK economy were highlighted by the Chancellor and are set to include:
- The National Insurance Primary Threshold for Class 1 NICs and the Lower Profits Limit for Class 4 NICs from 6 July 2022 will rise to £12,570 per annum.
- From April 2022, self-employed individuals with profits between the Small Profits Threshold (SPT) and the Lower Profit Limit will not pay Class 2 NICs, while allowing individuals to be able to continue to build National Insurance credits.
- From 6 April 2022, Employment Allowance will increase by £1,000 taking it up to £5,000.
- From 6pm on 23rd March 2022 a reduction in duty and diesel by 5p per litre was introduced for the next 12 months.
- The Chancellor has also indicated plans for cutting basic rate of income tax before the end of this Parliament from 20p to 19p in the pound.
You can find the full details of the spring statement at GOV.UK
Our advisory services at McKenzies
Our accountants can help with your Tax Planning, Financial Forecasting And Budgeting. Working with our team of accountants, we can prepare a budget and plans tailored to your business to help you achieve your goals. This forecasting can help keep you on target through Regular Reviews so that any necessary changes to your business plan can be implemented to help you reach your financial goal.