Chancellor Rishi Sunak announced a 5p per litre cut in fuel duty for petrol and diesel in the 2022 Spring Statement.
The government says it is the largest cut on all fuel duty rates, which applies from 6 pm on 23 March 2022.
The Chancellor also announced that the starting thresholds for national insurance contributions (NICs) will rise to £12,570.
From 6 July 2022, employees earning between £242 (£190 from 6 April to 5 July 2022) and £967 per week will pay NICs at 13.25%. Earnings over £967 will attract a 3.25% charge. Employers will pay 15.05% on their employees’ earnings over £175 per week.
Although employees’ NICs only become payable once earnings exceed £242 per week, earnings between £123 and £242 per week protect an entitlement to basic state retirement benefits without incurring a liability to NICs.
For the self-employed, whose profits exceed £11,908 per annum, they will pay 10.25% on the profits up to £50,270 and 3.25% on profits over that upper profits limit.
However, from April 2022, there will be a temporary increase in the rates of NICs payable for employees, employers and the self-employed as a transitional provision in readiness for the introduction of the Health and Social Care Levy from April 2023.
Mr Sunak also pledged that the basic rate of income tax will be cut by 1p in the pound in April 2024. The Chancellor said that the Office for Budget Responsibility (OBR) expects inflation to be back under control, with debt falling sustainably.
From April 2022, a £1,000 increase to the Employment Allowance will benefit SMEs, while there will be no business rates due on a range of green technology used to decarbonise buildings.
In addition, the Chancellor announced 50% business rates relief for eligible retail, hospitality, and leisure properties.
If you would like any advice about how the Spring Budget 2022 may affect you or your business, please contact us by calling 0115 928 3228 or emailing info@coalesco.co.uk.
