{"id":4875,"date":"2022-03-24T11:16:14","date_gmt":"2022-03-24T11:16:14","guid":{"rendered":"https:\/\/www.langricks.com\/?p=4875"},"modified":"2022-03-24T11:18:28","modified_gmt":"2022-03-24T11:18:28","slug":"spring-statement-2022","status":"publish","type":"post","link":"https:\/\/dev.withcreative.co.uk\/langricks\/spring-statement-2022\/","title":{"rendered":"SPRING STATEMENT 2022"},"content":{"rendered":"

Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his\u00a0first Spring Statement on Wednesday 23 March 2022.<\/p>\n

In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the\u00a0impact of rising prices for households and businesses.<\/p>\n

The Chancellor will lift the starting thresholds for National Insurance contributions (NICs). He also pledged a cut to\u00a0income tax in 2024. However, the Health and Social Care Levy will still be implemented in April 2022.<\/p>\n

For businesses, there is an increase to the Employment Allowance, as well as relief from business rates on a range of\u00a0green technologies and help with training and the adoption of digital technology.<\/p>\n

You should contact us before taking any action as a result of the contents of this summary.<\/p>\n

\n

HIGHLIGHTS<\/h2>\n

Increase in the National Insurance\u00a0threshold and Lower Profit Limit<\/h3>\n

Chancellor Rishi Sunak announced an increase in the annual National\u00a0Insurance Primary Threshold and the Lower Profits Limit in his 2022\u00a0Spring Statement.<\/p>\n

Primary Class 1 contributions are paid by employees. To align\u00a0the starting thresholds for income tax and National Insurance\u00a0contributions (NICs) the threshold will increase from 6 July 2022 from\u00a0\u00a39,880 to \u00a312,570.<\/p>\n

The Lower Profits Limit is the point where the profits of the selfemployed\u00a0become subject to Class 4 NICs. From 6 April 2022 the\u00a0Lower Profits Limit is increased to \u00a311,908 and from 6 April 2023 the\u00a0limit is increased further to \u00a312,570.<\/p>\n

In addition, there will be no Class 2 NICs on profits between \u00a36,725\u00a0and \u00a311,908. \u00a33.15 per week is payable where profits are over \u00a311,908.<\/p>\n

Temporary increase in National Insurance\u00a0rates<\/h3>\n

From April 2022, there will be a temporary increase in the rates of\u00a0NICs payable for employees, employers and the self-employed as a\u00a0transitional provision in readiness for the introduction of the Health\u00a0and Social Care Levy from April 2023.<\/p>\n

With the increase to the thresholds announced in the Spring\u00a0Statement, from 6 July 2022 employees earning between \u00a3242 (\u00a3190\u00a0from 6 April to 5 July 2022) and \u00a3967 per week will pay NICs at 13.25%.<\/p>\n

Earnings over \u00a3967 will attract a 3.25% charge. Employers will pay\u00a015.05% on their employees\u2019 earnings over \u00a3175 per week.<\/p>\n

Although employees\u2019 NICs only become payable once earnings exceed\u00a0\u00a3242 per week, any earnings between \u00a3123 and \u00a3242 per week protect\u00a0an entitlement to basic state retirement benefits without incurring a\u00a0liability to NICs.<\/p>\n

For the self-employed, where their profits exceed \u00a311,908 per annum,\u00a0they will pay 10.25% on the profits up to \u00a350,270 and 3.25% on profits\u00a0over that upper profits limit.<\/p>\n

Income tax reduction<\/h3>\n

The Chancellor announced the reduction in the basic rate of income\u00a0tax for non-savings, non-dividend income for taxpayers in England,\u00a0Wales and Northern Ireland to 19% from April 2024. This reduction\u00a0will not apply for Scottish taxpayers because the power to set these\u00a0rates is devolved to the Scottish Government.<\/p>\n

The change will be implemented in a future Finance Bill.<\/p>\n

Fuel duty<\/h3>\n

In a measure announced in the Spring Statement to help all motorists\u00a0\u2013 individuals, small businesses and hauliers \u2013 fuel duty for petrol and\u00a0diesel is cut by 5 pence per litre across the whole of the UK. This\u00a0measure took effect from 6pm on 23 March 2022 and is in place for\u00a012 months.<\/p>\n

Increased Employment Allowance<\/h3>\n

Employers are able to claim the Employment Allowance which\u00a0reduces their employer Class 1 NICs each year.\u00a0In the Spring Statement, the Chancellor announced an increase from\u00a0April 2022 of \u00a31,000 for eligible employers to reduce their employer\u00a0NICs by up to \u00a35,000 per year.<\/p>\n

The allowance can be claimed against only one PAYE scheme, even if\u00a0the business runs multiple schemes. Connected businesses, such as\u00a0companies under the control of the same person or persons, are only\u00a0entitled to one Employment Allowance between them.<\/p>\n

VAT on energy saving materials<\/h3>\n

The Chancellor announced a UK wide, time-limited zero rate of VAT\u00a0from April 2022 for the installation of energy saving materials. This\u00a0will apply to installations such as rooftop solar panels.<\/p>\n

This is in addition to the extension of the VAT relief to\u00a0include additional technologies and the removal of complex\u00a0eligibility conditions.<\/p>\n

Green reliefs for business rates<\/h3>\n

The government is introducing targeted business rates exemptions for\u00a0eligible plant and machinery used in onsite renewable energy\u00a0generation and storage, and a 100% relief for eligible low-carbon heat\u00a0networks with their own rates bill. It was announced in the Spring\u00a0Statement, that these measures will now take effect from April 2022, a\u00a0year earlier than previously planned.<\/p>\n

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Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his\u00a0first Spring Statement on Wednesday 23 March 2022. In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the\u00a0impact of rising prices for households and businesses. The Chancellor will lift the starting thresholds for […]<\/p>\n","protected":false},"author":2,"featured_media":4878,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1,21,24],"tags":[],"class_list":["post-4875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-articles","category-accountancy-news","category-business-news"],"yoast_head":"\nSPRING STATEMENT 2022 - Langricks Chartered Accountants and Business Advisers<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dev.withcreative.co.uk\/langricks\/spring-statement-2022\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SPRING STATEMENT 2022 - Langricks Chartered Accountants and Business Advisers\" \/>\n<meta property=\"og:description\" content=\"Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his\u00a0first Spring Statement on Wednesday 23 March 2022. 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