On March 23, 2022, the Chancellor of the Exchequer delivered his Spring Statement to Parliament.
With so much uncertainty in the world now due to the conflict in Ukraine, rising fuel prices, proposed energy increases and worries about inflation, all eyes were on Mr Sunak to see if he was going to deliver some good news to those who are struggling.
A summary of the key areas are highlighted below:
As widely expected before the official announcement today, fuel duty has been cut by 5p per litre has taken effect from 6 pm on 23 March, 2022 and will remain this way for 12 months. This is likely to save £3.30 on a typical fuel tank at today’s prices.
The threshold before you pay National Insurance will increase by £3,000 to £12,570 in July. This threshold is now the same as the personal allowance and will be worth £330 per year in tax savings.
Not for now, but one for the future, Mr Sunak pledged to cut the basic rate income tax from 20p to 19p before the end of this Parliament in 2024.
The Employment Allowance, which gives relief to smaller businesses’ National Insurance payments, will increase from £4,000 to £5,000 in April.
Those with energy-efficient materials such as heat pumps, solar panels, and insulation will not pay VAT on the installations.
There was some hope that Mr Sunak was going to delay the proposed National Insurance increase of 1.25% in April, but this was not to be, and this will go ahead as proposed.
If you have any questions on the above, please do not hesitate to contact the team at Golding, who is on hand to talk to you, so do Contact us!