Webpay Login info@biznuspayroll.co.uk | tel: 01373 228300

Spring Statement 2022

23rd Mar 2022

The Spring Budget on 23 March 2022 was reasonably light in terms of changes and the overall message was a positive one. Chancellor Rishi Sunak summarised plans for bringing the economy into a “post-Covid era” in the face of the cost of living difficulties and the war in Ukraine.

He confirmed that growth is up, employment is up and borrowing is down.  There are also a number of measures which will support individuals, as well as small businesses.

Below are just the few measures that impact payroll specifically…

National Insurance (NIC)

The threshold at which employee NIC is paid will be increased from July 2022 which will mean lower contributions for those who pay NIC. The threshold is currently £9,568 and will increase to £9,880 in April 2022. From July it will increase again to £12,750 which aligns it with the point at which you start paying income tax.

The application of the new primary threshold for National Insurance for Directors who pay National Insurance on an annual basis is one annual threshold. For 2022/23, this will not be £12,570, as the uplift is only applicable from July 2022. Therefore, the annual primary threshold for 2022/23 will be £11,908 (13 weeks at £9,880 and 39 weeks of £12,570).

Small businesses that qualify for the Employment Allowance will benefit from an increase in this allowance from £4,000 per year to £5,000 per year from April 2022.

Income Tax

Basic rate income tax will reduce from 20% to 19% from April 2024. In addition, the gift aid relief of 20% will continue for a three-year period following this reduction, so until April 2027 gift aid will continue to attract a 20% tax relief.