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Key Takeaways from the Spring Statement 2022

Key Takeaways from the Spring Statement 2022

Key Takeaways from the Chancellor of the Exchequer's Spring Statement 2022

The Chancellor Rishi Sunak unveiled his Spring Statement for 2022 on 23 March and in some ways it was more like a mini budget.

Key takeaways from the Spring Statement include:

  • The earnings threshold at which you start to pay National Insurance Contributions (NICs) will increase to £12,570 from July 2022. This is currently set at £9,880 (correct at time of writing, March 2022), so will leave people with more money in their pockets.
  • Class 2 NICs for the self-employed will also reduce, from April 2022, to zero for profits between £6,515 and £9,568
  • 5p per litre has been cut immediately from fuel duty.
  • The basic rate of income tax will reduce from 20% to 19% starting in April 2024.
  • The Employment Allowance will increase to £5,000 per annum from April 2022. Currently it’s set at £4,000. The allowance reduces the NICs that employers have to pay.
  • VAT on materials that save energy will be reduced from 5% to zero from April 2022. This should reduce the cost of things like solar panels, heat pumps and insulation.
  • Councils in England will be able to pass on their share of an additional £500m in extra Government support via the Household Support Fund. The new tranche is for the period 2022/23. The fund helps vulnerable residents, via councils, with short-term help with things like fuel and household bills, food, clothing and other essentials. The previous tranche ends on 31 March 2022, so this is timely.

Watch the Chancellor’s 28 minute Spring Statement 2022, as delivered to the House of Commons, in the video above (skip any adverts). Alternatively get all the detail in the House’s briefing summary here. There’s also a Read more

Job Support Scheme Replaces the Job Retention Scheme from 1st November 2020

The Job Support Scheme for employees starts 1 November 2020

The Job Retention Scheme (JRS) winds down at the end of October. It will be followed, for the next six months, by a new job support scheme, which subsidises the wages of employees working at least a third of their normal hours, to further support viable UK employers who face lower demands due to COVID-19.

In an attempt to keep employees attached to the workforce, the Government will be introducing a new Job Support Scheme from 1 November 2020, where employees will need to work a minimum of 33% of their usual hours.

For every hour not worked the employer and the Government will each pay one third of the employee’s usual pay. The government contribution will be capped at £697.92 per month.

Employees using the scheme will receive at least 77% of their pay (where the Government contribution has not been capped) & the employer will be reimbursed in arrears for the government contribution. The employee must not be on a redundancy notice.

The scheme will run for six months from 1 November 2020 and is open to all employers with a UK bank account and a UK PAYE scheme.

All Small and Medium-Sized Enterprises (SMEs) will be eligible. Large businesses will be required to demonstrate that Read more