The Chancellor made his annual Spring Statement speech today, the key measures the Chancellor announced where:
- Increase in the National Insurance Primary Threshold for Class 1 NICs and the Lower Profits Limit for Class 4 NICs from 6 July 2022, aligning it with the equivalent income tax personal allowance which is set at £12,570 per annum.
- A reduction in the basic rate of income tax to 19% from April 2024.
- from April 2022, self-employed individuals with profits between the Small Profits Threshold (SPT) (£6,725 for 2022-23)and the Lower Profit Limit (£9,880, increasing to £12,570 from July 2022) will not pay Class 2 NICs, while still allowing individuals to be able to continue to build National Insurance credits.
- The Employment Allowance will be increased by £1,000 from 6 April 2022 to £5,000.
- an immediate reduction in duty on diesel and petrol from 6pm on 23 March 2022, by 5 pence per litre, for 12 months.
- Reducing the Universal Credit taper rate from 63% to 55%, and increasing Universal Credit work allowances by £500 a year