{"id":7701,"date":"2022-03-24T18:03:00","date_gmt":"2022-03-24T18:03:00","guid":{"rendered":"https:\/\/www.boosst.financial\/insights\/?p=7701"},"modified":"2022-03-24T18:03:19","modified_gmt":"2022-03-24T18:03:19","slug":"spring-budget-2022","status":"publish","type":"post","link":"https:\/\/www.boosst.financial\/insights\/spring-budget-2022\/","title":{"rendered":"Spring Budget 2022"},"content":{"rendered":"

Our guide to the 2022 Spring Budget provides a short summary of Rishi Sunak’s\u00a0announcements<\/span>, focusing on the issues pertinent to our clients, their families and their businesses.<\/span><\/span><\/strong><\/h4>\r\n

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There\u00a0<\/span>were no major changes to Pension\u00a0legislation, Inheritance Tax or Capital Gains Tax.<\/span><\/span><\/strong><\/h5>\r\n

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The increasing cost of living is not ‘new-news’ – but yesterdays’ Budget offered Rishi Sunak a prime opportunity to intervene and reduce financial pressure for workers across the UK. We recently wrote about the rising rate of inflation (here<\/a>) and the impact of the Russian invasion on the global economy (over here<\/a>). These two events have increased\u00a0uncertainty surrounding the Office for Budget Responsibility\u2019s (OBR) spring economic and fiscal forecast – creating conundrums in every direction for the Chancellor.\u00a0<\/span><\/p>\r\n

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Fuel Tax Cut:<\/span>\u00a0Tax on fuel to be \u00a0reduced by 5p per\u00a0litre for 12 months.<\/strong>\u00a0This will allegedly\u00a0amount to savings of \u00a32.4bn for households and businesses over the next year. This of course is reliant upon petrol stations passing on that saving by reducing pump prices!<\/p>\r\n

Income Tax Reduction:<\/span> The government will reduce the basic rate\u00a0of income tax to 19% (currently 20%) from\u00a0April 2024.<\/strong> This is a tax cut of over \u00a35billion a year, and represents the first cut\u00a0in the basic rate of income tax in 16 years.\u00a0Whilst the tax cut will certainly be welcome, it does create a further disparity between workers and non-workers. It is of course the workers who see their 1% tax saving offset by a 1.25% increase to National Insurance – whereas those living on rental or pension income will get the same tax reduction without the corresponding NI increase. This change will be implemented in a\u00a0future Finance Bill and a three-year transition\u00a0period for Gift Aid relief will apply, to\u00a0maintain the income tax basic rate relief at\u00a020% until April 2027.<\/p>\r\n

National Insurance (NI) threshold increased:<\/span><\/strong>\u00a0In combination with the introduction of the 1.25% Health & Social Care Levy, if you earn \u00a335,000 or\u00a0less you will pay less NI than you do currently on\u00a0the same income. If you earn \u00a335,000 or more you\u00a0will pay more than you do currently.<\/strong>\u00a0The amount of earnings you can have before paying National Insurance is being increased from \u00a39,880 to\u00a0\u00a312,570 from July 2022, benefitting almost 30 million people. Government claim that a ‘typical UK employee’ will save around \u00a3330pa from\u00a0July and around 70% of National Insurance\u00a0contributions (NICs) payers will pay less NICs,\u00a0even after accounting for the introduction of\u00a0the Health and Social Care Lew. This has been delayed until July to give payroll software developers and\u00a0employers the opportunity to update their systems.<\/p>\r\n

VAT cut on renewables:\u00a0<\/span>Households will pay 0% VAT on solar panels, heat pumps and insulation for the next five years. <\/strong>This will also apply to\u00a0wind and water turbines, which were previously out of scope under EU rules and the\u00a0Treasury later clarified that the 0% VAT applies both to the materials used and the cost of installation. A fairly modest solar installation will now cost \u00a31,000 less and save \u00a3300pa on energy.\u00a0<\/p>\r\n

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To download our full guide, click the image below:<\/span><\/h5>\r\n

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Our guide to the 2022 Spring Budget provides a short summary of Rishi Sunak’s\u00a0announcements, focusing on the issues pertinent to our clients, their families and their businesses.   There\u00a0were no…<\/p>\n","protected":false},"author":2,"featured_media":6481,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[44,124,39,83,84,82],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/posts\/7701"}],"collection":[{"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/comments?post=7701"}],"version-history":[{"count":5,"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/posts\/7701\/revisions"}],"predecessor-version":[{"id":7708,"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/posts\/7701\/revisions\/7708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/media\/6481"}],"wp:attachment":[{"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/media?parent=7701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/categories?post=7701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.boosst.financial\/insights\/wp-json\/wp\/v2\/tags?post=7701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}