The Chancellor recently made his annual Spring Statement speech where he set out the Government’s tax plan to support the UK economy, businesses and families in both the short and the medium term. It was delivered at a time of unprecedented cost of living rises and war in Ukraine. It also comes off the back off a COVID virus that has not gone away and which the economy hasn’t really begun to bounce back from.
A difficult time indeed then for businesses and individuals alike. So what decisions has he made to attempt to ease the financial burden that is here and now. And also what is to come.
Key measures the Chancellor announced include, but are not limited to:
- an increase to the National Insurance Primary Threshold for Class 1 NICs and the Lower Profits Limit for Class 4 NICs from 6 July 2022, aligning it with the equivalent income tax personal allowance which is set at £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
- the Employment Allowance will be increased by £1,000 from 6 April 2022 to £5,000, which will benefit around 495,000 businesses
- an immediate reduction in duty on diesel and petrol from 6pm on 23 March 2022, by 5 pence per litre, for 12 months.
The full detail on all the measures, some of which are subject to parliamentary approval, can be found on GOV.UK.