Spring Statement 2022
On the day that inflation reached its highest level in thirty years, the Chancellor Rishi Sunak presented his Spring Statement. This statement was to help working families, stimulate growth and prepare the way for further tax cuts for individuals and businesses.
o Tax - Although the increase in National Insurance Contributions set for April will go ahead the threshold has been increased. From 6 July the threshold and lower profits limit will rise to £12,570 in line with the income tax personal allowance.
Families on low incomes may be able to benefit from increased funding of the household support fund run by local councils.
The rate of income tax will be reduced in 2024 from 20% to 19%.
o Energy - The cost of solar panels, heat pumps and insulation to householders will fall as they will be zero rated for VAT.
The fuel duty will be cut so that from 6pm tonight the price of petrol will be reduced by 5p a litre.
o Small & Medium Sized Enterprises
SME’s will continue to obtain business rates relief and eligible retail, hospitality and leisure businesses will obtain a 50% deduction. The Annual Investment Allowance will be increased to £1million until March 2023, the Employment Allowance will increase to £5,000 and there are further initiatives for training.
To encourage growth and productivity the government will undertake a review of the Apprentice levy, R&D credits and business investment. We can expect more information and possible reforms in the Autumn Statement.
23 March 2022
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