Rishi Sunak presented his Spring Statement on Wednesday 23 March 2022. So, what exactly did the Chancellor say and, more importantly, how will this affect you?
A summary of this year’s Spring Statement is now available here but here are the main highlights:
- Fuel duty cut by 5p per litre
- 0% VAT for green initiatives for the next 5 years
- Household support fund increased to £1bn
- NI contribution threshold to increase by £3,000
- Increase in employment allowance to £5,000
- R&D reform is underway
- Tax rate cuts for businesses in the autumn budget
- The income tax basic rate will be cut from 20% to 19% before the end of 2024
- 50% business rates cut from 5/4/22 as previously announced
The Chancellor responded to the Office for Budget Responsibility’s economic forecasts, as well as reaffirming the fundamental taxation changes which will affect businesses and individuals in the new tax year. We have included informative comments in the report to help you assess the likely effect that the proposed changes may have on you personally.
You might also find the tax calendar for 2022/23 handy for when you’re planning your activity.
We hope the summary will provide you with a useful update and allow you to get to grips with the changes but as usual, if you have any questions in understanding how the changes to tax affect you, please don’t hesitate to get in touch.