Nick Day is joined on The Payroll Podcast by Simon Parsons M.Sc FCIPPdip MBCS, Director UK Compliance Strategies at SD Worx, Simon is a Specialist in UK tax and Social Insurance legislation and all things payroll software development, and also a fellow panellist on Payroll Question Time.
The Chancellor, Rishi Sunak yesterday made his annual Spring Statement where he set out the Government’s tax plan to support the UK economy, businesses and families in both the short and the medium term. This is breaking news that will impact payroll professionals from the new 2022-23 tax year.
But what stuck out?
- National insurance - the primary threshold will be aligned to the tax-free allowance from July 2022.
- The employment allowance - will be increased from £4000 to £5000 in April 2022.
- Income tax - the basic rate of income tax will be reduced from 20% to 19% in 2024.
Key measures the Chancellor announced as part of the plan include (all taken from Simon Parsons' website: https://payadvice.uk/:
- An increase to the National Insurance Primary Threshold for Class 1 NICs and the Lower Profits Limit for Class 4 NICs from 6th July 2022, aligning it with the equivalent income tax personal allowance which is set at £12,570 per annum.
- From April 2022, self-employed individuals with profits between the Small Profits Threshold (SPT) and the Lower Profit Limit will not pay Class 2 NICs, while allowing individuals to be able to continue to build National Insurance credits.
- The Employment Allowance will be increased by £1,000 from 6 th April 2022 to £5,000, which will benefit around 495,000 businesses.
- An immediate reduction in duty on diesel and petrol from 6pm on 23rd March 2022, by 5 pence per litre, for 12 months.
The full detail on all the measures, some of which are subject to parliamentary approval, can be found at:
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Thanks for listening, folks – I look forward to bringing you the next episode of the Payroll Podcast real soon!