Breaking payroll news from the Spring Statement
23 March 2022
Chancellor, Rishi Sunak, delivered the Spring Statement on 23 March 2022. Within it were several announcements that payroll professionals should ensure they are aware of.
The first piece of headline news centred on National Insurance (NI). By July 2022, the threshold at which individuals begin paying NI will be aligned with that of income tax. This means that the primary threshold will be set at £12,570.
Second, the employment allowance, available to certain eligible business, will be increased from £4,000 to £5,000 from April 2022.
The final, and possibly biggest, statement centred on income tax. In 2024, the government will reduce the basic rate of income tax from 20% to 19%.
As always, the devil will be in the detail, and the policy team will be keeping you up to date with all the additional information that is sent out following the Spring Statement.
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