The Chancellor has delivered a spring statement today. We have picked out the most relevant items below.
Fuel duty for petrol & diesel is being cut by 5 pence per litre. This will take affect from 6pm today (23rd March 2022) and will last for 12 months.
National insurance thresholds.
National Insurance starting thresholds will rise to £12,570 from July 2022. The cut, worth over £6 billion, will benefit 30 million working people with a typical employee saving over £330 a year.
Reducing NICs for self-employed people
From April, self-employed individuals will not pay Class 2 NICs on profits between the Small Profits Threshold and Lower Profits Limit. This change represents a tax cut for around 500,000 self-employed people worth up to £165 per year.
Help with energy bills
Domestic energy customers in Great Britain will receive a £200 reduction in energy bills this Autumn, which will be paid back automatically over the next 5 years. Households liable for Council Tax in Bands A-D in England will also receive a £150 non-repayable Council Tax Rebate, and Local Authorities are receiving extra discretionary funding to help those who are in need but not eligible.
Increasing the Employment Allowance
Employment Allowance is a relief which allows eligible businesses to reduce their employer National Insurance contributions (NICs) bills each year. Employment allowance will increase by £1,000 from £4,000, to £5,000.
Reduction of income tax from 2024
The government will cut the basic rate of income tax from 20% to 19% from 2024. This will be the first cut to the basic rate of income tax in 16 years.
More information about the full spring statement can be found here: https://www.gov.uk/government/news/chancellor-announces-tax-cuts-to-support-families-with-cost-of-living