In today’s Sping Statement, Rishi Sunak announced he would raise the National Insurance Contributions (NICs) threshold and cut fuel duty, as well as pledging to lower the basic rate of income tax in this parliament.
Tax and NICs
The NIC threshold will rise to £12,570 in July (up from from the current level of £9,570), which will mean it will align with the income tax personal allowance.
The NIC Employment Allowance, which gives relief to smaller businesses' National Insurance payments, will increase from £4,000 to £5,000 from April.
A pledge was made by the Chancellor to lower the basic rate of income tax from 20% to 19% before the next General Election.
Other Points
Fuel duty will be cut by 5p per litre until March 2023
Homeowners installing energy efficiency materials such as solar panels, insulation or heat pumps will not have to pay any VAT on these items.
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Please contact us to find out how the above applies in your circumstances and how you can reduce your tax liabilities and maximise your tax efficiency.
Please note that the above is for general information only and does not constitute financial or tax advice. You should not rely on this information to make or refrain from making any decisions. You should always obtain independent professional advice in respect of your own situation.
