"People. Capital. Ideas" - The Chancellor's catchphrase for his 2022 Spring Statement
Many were not expecting a great deal of excitement in this Spring’s Statement. However, as the UK continues on its path towards recovery, our experts explore the key takeaways from Sunak's announcements and the impact for businesses and individuals alike.
Personal Taxes
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Morag Watson
Private Client Partner
"The headline-grabbing announcement from the Chancellor’s speech, was the promise to cut the basic rate income tax by 2024 to 19%, a reduction of 1% and the first cut to the basic rate of income tax in 16 years."
Employment Taxes
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Dave Hedges
Partner & National Head of Employment Taxes
"The Chancellor stated the Employee National Insurance starting threshold will rise to £12,570 from July 2022 - a welcomed help for employees, but there was no mention on the employer threshold."
VAT and Indirect Taxes
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Scott Craig
Partner & National Head of Indirect Taxes
"A 12-month cut in fuel duty of 5 pence per litre is great news for households and businesses alike, as long as the cuts are passed on by fuel retailers and reflected in the prices at the pumps for everyone."
Corporate Taxes
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Ray Abercromby
Corporate Tax Partner
"There hasn't been much change introduced by Sunak for businesses, as he's had little room to manoeuvre. But, those companies who are capital intensive will benefit from the increased Annual Investment Allowances."
Download our 2022 Spring Statement update
"Not bold enough" Praveen Gupta, National Head of Tax at Azets
Following widespread speculation that the Chancellor would reduce tax on fuel and energy, there is some good news for individuals and businesses in the decision to cut fuel duty by 5p per litre and incentivise investments in green energy. However, there was scope for the Government to be bolder and offer even greater financial support, given the rate at which prices are rising.
The announced £3,000 increase of the National Insurance threshold will offer some relief to employees. However, businesses had hoped for a complete U-turn on the 1.25% NICs increase, which might have been achieved with the Government recently receiving record tax receipts across the board.
"I welcome the Chancellor's pledge to cut tax rates on business investment in his Autumn Budget, as SMEs continue to have a significant role in driving the UK’s economic recovery from the pandemic, despite ongoing disruption to supply and rising costs. However, existing schemes such as the super-deduction have so far been underutilised, and we would encourage the Government to extend incentives for investment in key areas such as R&D, innovation, and technology sooner rather than later."
Our full summary for the 2022 Spring Statement will be available for download shortly. We will update the link below in due course.
Would you like to know more?
With the UK hosting one of the most complex tax systems in the world, staying compliant, making the most of the tax saving opportunities and growing your finances can be a daunting task.
At Azets, our Tax experts are on hand to offer support and guidance. If you have any queries regarding the 2022 Spring Statement and the impact the changes may have on you or your organisation, please get in touch with your usual Azets contact or a member of our specialist Tax team.
Our website is also regularly updated with the latest news, insight and details of economic support and measures as they are announced by the UK Government.
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