Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his first Spring Statement on Wednesday 23 March 2022. So, what exactly did the Chancellor say and, more importantly, what did it actually mean?
In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the impact of rising prices for households and businesses.
The Chancellor will lift the starting thresholds for National Insurance contributions (NICs). He also pledged a cut to income tax in 2024. However, the Health and Social Care Levy will still be implemented in April 2022.
For businesses, there is an increase to the Employment Allowance, as well as relief from business rates on a range of green technologies and help with training and the adoption of digital technology.
The Chancellor responded to the Office for Budget Responsibility’s economic forecasts, as well as reaffirming the fundamental taxation changes which will affect businesses and individuals in the new tax year.
In our Statement Report, we provide an outline of the main areas of taxation covered in the Spring Statement. We have also included our observations on the more important changes, together with any planning points that may arise. In addition, we have included a detailed calendar of the most important dates for 2022/23 that will help you with tax planning ahead of time.
Full Spring Statement 2022 report
- The personal allowance
- The marriage allowance
- Tax bands and rates
- Tax on savings income
- Tax on dividends
- Employer-provided cars
- Employer-provided fuel benefit
- Employer-provided vans and fuel
- National Insurance contributions (NICs)
- National Living Wage (NLW) and National
Minimum Wage (NMW)
- Making Tax Digital for Business: VAT
- MTD for Corporation Tax (CT)
- Corporation Tax rates
- Capital allowances
- Preventing abuse of the R&D tax relief
- Cultural relief
- Capital gains tax (CGT) rates
- CGT annual exemption
- Inheritance tax (IHT) nil rate bands
- VAT rates and limits
- Vehicle Excise Duty (VED)
- Landfill Tax
- 2022/23 Tax Calendar
Should you need any further help or support or wish to discuss how and of the measures announced in the Spring Statement 2022 affects you and your business, do get in contact with us. Email us via our contact form or call us on 01237 472071