The Spring Statement 2022 – what it holds for freelancers and contractors
In this blog our MD, Daniel Mepham, shares his thoughts from the March 2022 Spring Statement.
A much anticipated Spring Statement was delivered on March 23rd by Chancellor, Rishi Sunak against a backdrop of war in Ukraine, post pandemic super spending and an ever increasing rate of inflation. With that in mind I was expecting some headline grabbing announcements. I’ve highlighted below some of the key points, but if you want to see the full details you can read them in our full pdf guide: Spring Statement March 2022
- The National Insurance threshold is being increased by £3,000 to bring it in line with the Income Tax Personal Allowance. This is a Class 1 saving of over £330 per year now based on the increased rate of 13.25% including the new 1.25% Health and Social Care Levy
- The planned Health and Social Care Levy of 1.25% will go ahead from April this year
- Personal Income Tax will be reduced from 20% to 19% by the end of this government (2024).
- The OBR predicts the rate of inflation for this year to average 7.4% and the economy to grow by 3.8%
- For the next five years, there will be no VAT applied to energy-saving materials including solar panels, heat pumps and insulation
- Fuel duty will be cut by 5p per litre from this evening at 6pm. This is a temporary measure until March next year
- The employment allowance to help with the costs of Employers National insurance is being increased to £5,000 from £4,000. Single employee/Director companies are not eligible for this allowance
If you are a Taxevo client, your accountant will be in touch if these changes affect you. If you’re not a Taxevo client but are a contractor or Freelancer looking for an accounting partner to support you with the minefield of legislation and tax, then get in touch today. We’d love to hear from you.