This Article will explain you about most important things of the Spring statement 2022 delivered by the chancellor, Rishi Sunak.
Usually what happens is that the major changes to the tax related matters are announced in the autumn budget. However, this announcement has been delivered in advance since the UK as region expect that the inflation levels will hit the record high 7.4% due to the crisis that the world at large is facing. This will affect the increase in living costs (mainly fuel, food and energy) as a result immediate effect could be to the SMEs.
Following are major highlights of the Spring Statement 2022
- Employment allowance increased up to £ 5000 from April 2022
- Duty for the fuel will be reduced from 6p to 5p from 23rd March 2022, which is the biggest cut ever which will last till March 2023
- Basic rate of income tax is expected to cut by 1p (from 20p to 19p) in the pound from 2024
- VAT rate is reduced to 0% for green energy for homeowners for next five years
- Business investment tax credits to be reformed
- National Insurance contribution threshold will be increased by £ 3000, from July 2022
- From this July, Employees will be able to earn up to £12,570 a year without paying income tax or National Insurance.