2022 Spring Statement

Taxation

An increase to the level of earnings at which people start paying National Insurance contributions (NICs) from £9,880 to £12,570 in July 2022.
A reduction to Class 2 NICs to zero for the self-employed with profits between the small profits threshold and the lower profits limit, from April 2022.
A temporary 12-month reduction of 5p per litre on fuel duty.
From April 2024, the basic rate of income tax will be cut from 20% to 19%.
An increase in the employment allowance (which allows employers to reduce their NICs payments up to a certain amount) from £4,000 to £5,000, from April 2022.

Sustainability

VAT on energy-saving products such as solar panels, heating pumps and roof insulation will be cut from 5% to zero for five years.
From April 2022 there will be no business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries. Eligible heat networks will also receive 100% relief.

Allowances and reliefs

The Annual Investment Allowance has been temporarily increased to £1 million until 31 March 2023. It is available to sole traders and partnerships and will cover the qualifying plant and machinery expenditure of over 99% of businesses.
R&D tax reliefs will be reformed to deliver better value for money. The scope of reliefs will also be expanded to cover data, cloud computing and pure maths.
The Government will review how Apprenticeship Levy funds can be spent and whether more flexible apprenticeship training models can be supported.