Three effects the 2022 UK Spring Statement will have on your business:
1. Increases the annual National Insurance Thresholds
Annual National Insurance Primary Threshold and Lower Profits Limit from £9,880 to £12,570, from July 2022. This aligns the Primary Threshold and Lower Profits Limit with the income tax personal allowance. This will help almost 30 million working people, with a typical employee benefitting from a tax cut worth over £330 in the year from July.
2. Growth and Productivity Boost
Boosting productivity and growth by creating the conditions for the private sector to invest more, train more and innovate more – fostering a new culture of enterprise. To do this, the government intends to cut and reform business taxes, to create a culture of enterprise and the conditions for private sector-led growth.
3. Reduction in Income Tax
The basic income tax will be reduced from 20% to 19% from April 2024. This is a tax cut of over £5 billion a year and represents the first cut in the basic rate of income tax in 16 years. Alongside tax cuts, the government also wants to make the tax system simpler, fairer and more efficient, and will confirm plans for reforms to reliefs and allowances ahead of 2024.