Chancellor Rishi Sunak made his 2022 Spring Statement on 23 March 2022 and some changes he announced are as follows:
Income Tax
From April 2024, the basic rate of Income Tax will reduce by 1% from 20% to 19%. But Gift Aid will maintain the 20% rate of relief for charities until April 2027.
National Insurance Contributions (NICs)
Employers Employment Allowance
From 6 April 2022, the maximum Employment Allowance available to employers will increase to £5,000 from £4,000.
Employees NIC
From 6 July 2022, the Primary Threshold (above which employees pay Class 1 NICs) will increase from £9,880 to £12,570.
Self-employed Class 4 NIC
From 6 July 2022, the Lower Profits Limit will increase from £9,880 to £12,570 and will remain aligned with the personal allowance at £12,570 until 2025-26.
VAT: 0% VAT on energy saving products
From 1 April 2022, there will be an expansion of the VAT relief for the domestic installation of qualifying Energy-Saving Materials (ESMs), some of which had previously been made outside the scope of VAT. Qualifying installations will be zero-rated instead of the reduced rate of 5% from 1 April 2022 until 31 March 2027, when the 5% rate will be restored.
Fuel duty
Immediate reduction of Fuel Duty by 5p from 6pm, 23 March 2022 which will apply to diesel, leaded and unleaded petrol.
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NAZALI TAX & LEGAL |