The Chancellor’s Spring Statement opened by highlighting the war in Ukraine and the financial impact of the conflict on the UK economy, most notably in soaring petrol and energy prices and the cost-of-living squeeze.
In a speech that lasted less than 30 minutes, the key takeaways were equally as brief, as we roundup the announcements that may impact you:
- The basic rate of income tax will fall from 20% to 19% by the end of the current Parliament in 2024
- National Insurance thresholds will rise by £3,000 from 6th July 2022, to fall in line with the Personal Allowance. This means someone must earn £12,570 per annum before paying income tax or National Insurance
- The Employment Allowance is set to increase from £4,000 to £5,000 per annum, from 6 April 2022
- For only the second time in 20 years fuel duty rates will be cut by 5p per litre until March 2023, coming into effect from 6pm tonight (23rd March 2022)
- VAT cut to 0% on energy saving materials such as insulation, solar panels and heat pumps
- Retail hospitality and leisure sectors will receive a 50% discount on business rates up to a maximum of £110,000
- There are planned reforms to the R&D tax credits scheme, with further details to be announced in due course
- A consultation will take place on how to improve capital allowance rules to drive growth and support future business investment.
As always, our experts are on hand to discuss how the changes may affect you. To find out more, contact your local Champion office.
Click the below link to download Champion’s complete Spring Statement report.
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