Today’s spring statement brought a welcome announcement of the increase in the national insurance primary threshold. Below is a brief summary of some of the measures to be introduced:
- National insurance – The threshold at which individuals start paying National insurance will rise to £12,570 in July this year bringing it into line with the personal allowance. This will save individuals over £330 a year, which should offset the increased cost of the rising rates of national insurance that will be felt by many lower paid workers from April 2022.
- Employment Allowance – this will increase to £5,000 from £4,000 this April.
- Income Tax – The Chancellor of the Exchequer also pledged that before the end of parliament the basic rate of income tax will be cut from 20% to 19%.
- Energy efficient Materials – For the next 5 years the VAT on energy efficient materials charged to homeowners will be cut to zero percent.
- Fuel Duty – this will be cut by 5p per litre until March 2023.
- Local Authorities – The government is doubling the household support fund to £1bn (from £500m) from April. This fund has been set up to help the most vulnerable households with the rising cost of living.
Keep an eye out for our full update that will be sent out tomorrow.
As always if you have any questions or concerns, please do not hesitate to get in touch.
