Ambassador House | 61 Worcester Street | Wolverhampton | WV2 4LQ

Fuel Duty Cut

  • Cutting fuel duty on petrol and diesel by 5p per litre for 12 months.

  •  The cut takes effect from 6pm on 23rd March 2022.

Employment Allowance increase

  • The Employment Allowance is a relief which allows eligible businesses to reduce their employer National Insurance contributions (NICs) bills each year.

  • From April 2022 the Employment Allowance will increase from £4,000 to £5,000.

Reforming Research & Development credits

  • From April 2023, businesses will be able to claim Research & Development tax relief on the storage of their vital data and pure maths research.

  • Draft legislation will be published this summer with a review to try to improve the Research & Development incentives.

Greater Business Investment

  • There will be a series of potential policy changes to the UK’s existing capital allowances regime, which the government will consider ahead of April 2023.

  •  The aim is to encourage business investment to drive forward productivity growth.

  • The government will be engaging with business organisations and other interested parties from now until the autumn.

National Insurance Threshold Raised

  • From July 2022, the annual National Insurance Threshold will increase from £9,880 to £12,570 for both employees (Class 1 NIC) and self-employed (Class 4 NIC).

  •  From July 2022 onwards this will save a typical employee and self-employed individual over £330 and £25 per year respectively.

  •  From April 2022, self-employed individuals will not pay Class 2 NIC on profits between the Small Profits Threshold (£6,725) and the Lower Profits Limit (2022/23 £11,908 and 2023/24 £12,570). This will benefit around half a million self-employed by up to £165 per year.

  •  They will still be entitled to access entitlement to contributory benefits such as state pension, maternity allowance and employment & support allowance.

Basic rate income tax cut

  • The UK government will cut the basic rate of income tax by 1% from April 2024 to 19%. The current basic rate is 20%.

  • Scottish resident taxpayers already enjoy a 19% income tax rate on the first £2,096 (£2,162 for 2022/23) of their taxable income.

Abolishing VAT on energy saving insulation

  • The 5% VAT rate on energy saving insulation and solar panels will be reduced to zero for the next 5 years.

  •  This will positively affect homeowners having materials like solar panels, heat pumps or insulation installed.

  •  Due to the Northern Ireland Protocol this cut will not immediately apply to Northern Ireland. The Northern Ireland government will initially be compensated through the Barnett formula.

  •  The government will reverse the EU’s decision to take wind and water turbines out of scope for VAT and zero rate them.

Newsletter Sign Up