Chancellor Rishi Sunak presented his 2022 statement on Wednesday 23rd March 2022. The key announcements are summarised below;
- Fuel duty will be cut by 5p per litre until March 2023
- VAT cut from 5% to 0% for five years on homeowners installing energy efficiency materials e.g. solar panels, heat pumps, insulation etc.
- Income threshold for which people start paying National Insurance will rise by £2,690 to £12,570 in July.
- National Insurance contributions to increase by 1.25%. Employees will see their national insurance contributions increased from 12% to 13.25%
Click here for an excel download to calculate how much more or less NIC you will pay
- Basic rate income tax planned to drop from 20% to 19% in April 2024
- State pension will rise by 3.1% from April 2022 from (£179.60 to 185.15 a week).
- Employment Allowance giving relief to small businesses employer national insurance payments will increase from £4,000 to £5,000 from April 2022.
- Due to the increase in National Insurance contributions of 1.25%, employers’ contribution will jump from 13.8% to 15.05%.
- The chancellor said the OBR forecast that inflation would average 7.4% this year.
- Local authorities will get another £500m for the Household Support Fund from April, creating a £1bn fund to help vulnerable households with rising living costs
For a more in-depth summary on the spring statement, please click here
For HMRCs Statement, click here