Have you heard the Spring Statement 2022 highlights? It is no secret that times are hard at the moment and that prices and inflation is rising to a worrying level. The Chancellor has announced a number of changes in his Spring statement with the aim to help both individuals and business. This is in addition to the changes announced last year and the changes to National Minimum Wage.
Here are the Spring Statement 2022 highlights:
- Fuel Duty on petrol and diesel will be cut by 5p per litre, effective from 23 March 2022
- Employment Allowance for small business to increase to £5,000 from April 2022
- The National insurance primary threshold and lower profit limits is to be aligned with personal allowance, increasing to £12,570
- Income tax to be reduced from 20% to 19% from 2024
- No VAT to be charged on green energy solutions such as solar panels and insulation
- Temporary 50% discount on business rates for Retail, Hospitality and Leisure up to £11,000
- Changes to R&D tax credits from 2023
The full Spring Statement 2022 document is available online.
This is in addition to the changes announced last year and the changes to National Minimum Wage. The NMW reflects the minimum wage a worker should get depending on their age and if they’re an apprentice. For those over 23 years old this is increasing to £9.50 per hour from £8.91
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to. The National Living Wage is higher than the National Minimum Wage – and only applies to workers if they’re over 23. It does not matter how small an employer is, they still must pay the correct minimum wage. People classed as ‘workers’ must be at least school leaving age to get the National Minimum Wage. They must be 23 or over to get the National Living Wage. These rates do not apply to the self-employed, company directors and volunteers just to name a few. Full list is available at gov.uk.
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