Spring Statement 2022 – a summary for business owners

The Chancellor, Rishi Sunak, delivered his Spring Statement yesterday which was keenly anticipated by business owners who find themselves challenged by the ‘cost of living crisis’. The context of delivering such a statement with the situation in Ukraine looming large in global consciousness meant it was not the time to introduce more tax rises (other than those previously announced) and worry the UK population even further.

We’ve put together a guide for you which you can download below covering all the key points from yesterday’s statement.

We also draw your attention to the following five issues to keep under review for you and your business:

  • The alignment of personal allowances and NIC thresholds is helpful and is part of HMRC’s plan to simplify tax – and all employees can benefit.
  • An increase in the employment allowance to £5k (from £4k) is also appreciated by our clients.
  • A 5p reduction in fuel duty, for those who haven’t already switched to electric vehicles, is good.
  • Whilst there was some concern (in advance of his speech) about potential changes to other taxes such as R&D rules, again the timing of this was not appropriate, and therefore it is unchanged.
  • The Chancellor indicated that there would be a future income tax reduction to 19% (from 20%) – but I wouldn’t see this as a certainty – more to do with winning votes in the future.