Spring Statement 2022 - Highlights

Chancellor Rishi Sunak delivered his Spring Statement in the House of Commons on Wednesday 23 March, with a number of tax related announcements which are summarised below:

Spring Statement 2022
  • From 6pm on 23 March - fuel duty cut by 5p per litre until March 2023
  • No change to the previously announced 1.25% NIC increase due to commence in April 2022 (including 1.25% increase on dividend tax rates)
  • NIC threshold to increase by £3,000 from July 2022 to equate to income tax threshold of £12,570
  • Business tax reliefs to be considered in the Autumn 2022 Budget to boost growth and productivity
  • Commitment to improving R & D reliefs
  • Employment Allowance for employers to increase by £1,000 to £5,000 from April 2022
  • Income Tax basic rate to reduce by 1% to 19% from April 2024
  • 0% VAT on installation of energy saving materials like solar panels; not applicable to Northern Ireland, although Government will assist the NI Executive via the Barnett formula and subject to raising the matter with European Commission

Should you require any further information on how these changes might impact upon you or your business, please contact our Tax Team at any GMcG office who will be happy to advise.