Accounting News – Spring 2022

The 2022 Spring Statement: What It Means for You and Your Business

The Chancellor’s Spring Statement in March 2022 came against a backdrop of rising energy costs, inflation, and the ongoing recovery from the pandemic. While it wasn’t a full Budget, there were some important announcements for individuals and businesses.

Key measures for individuals

• National Insurance (NI) threshold raised – From July 2022, the NI threshold increased to £12,570 (in line with the personal allowance). This means employees and the self-employed can earn more before paying NI.
• Fuel duty cut – A temporary 5p per litre cut to help with rising fuel costs.
• Household support – An additional £500 million was put into the Household Support Fund, available via local authorities.

Key measures for businesses

• Employment Allowance increased – Small businesses and charities can now reduce their employer NI bills by up to £5,000 (up from £4,000).
• Business rates relief – Extended to help sectors like retail, hospitality, and leisure.
• Future tax plans – The Chancellor hinted at reforms to R&D tax credits and capital allowances to encourage business investment from 2023.

Takeaway: The NI threshold change benefits employees and the self-employed, but rising costs mean careful planning is more important than ever. Businesses should also start reviewing investment plans to make the most of future tax reliefs.

Need help understanding how these changes affect you? Get in touch with our team for clear, tailored advice on tax planning and business strategy.