Against a backdrop of rising costs and inflation Rishi Sunak’s Spring Statement focused on easing the burden for families and businesses.
The previously announced rises in National Insurance contributions remain but are sweetened a little by an increase in the starting thresholds for employees and the self-employed. There is no such sweetener for employers as employers’ National Insurance thresholds are not affected, but those eligible for the Employment Allowance will get an extra £1,000 as this is to increase from £4,000 to £5,000 for 2022/23.
Other measures announced include:
- A temporary 12 month decrease in fuel duty. This will benefit individuals and businesses alike and go some way to helping with the spiralling costs of fuel.
- A review of the capital allowances system in advance of the Autumn budget.
- Confirmation that the government is considering improving the effectiveness of the R&D tax regime.
- And finally, we were promised a 1% drop in the basic rate of income tax, but not until 2024.
The information in this article was correct at the date it was first published.
However it is of a generic nature and cannot constitute advice. Specific advice should be sought before any action taken.
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