Publications & Financial Updates
Check back here regularly to find out what's going on at our company and in the financial environment.
News Item - October 2022
A brief summary of the Chancellor's Autumn Statement on (to be announced) 2022:
Please note that the above report is only our brief interpretation and understanding of the Government's budget proposals for the 2022 Autumn Statement, delivered to Parliament by Rishi Sunak on (To be announced). These provisions are normally confirmed upon the receipt of Royal Assent later in the year. Jonathan Davis and his associates can not be held responsible for any errors, omissions or changes to the above.
News Item - March 2022
A brief summary of the Chancellor's Spring Statement on Wednesday 23rd March 2022:
From July, there will be an increase in the National Insurance threshold by £3,000 - thereby aligning both the Primary Threshold and Lower Profits Limit with the income tax personal allowance at £12,570. However, for some earners, the change will cancel out the NICs surcharge that will come into effect this April. On the 6th July 2022, Employees’ class 1 NICs will increase, which unusally starts mid-way through the year. On that date, employees will now be paying class 1 NICs at 13.25% on earnings between the lower earnings limit and the primary threshold.
To help alleviate the extra NI charge, there is a planned 1% cut in income tax, though not until 2024; reducing the basic rate of income tax down from 20% to 19%. It is expected that this will reduce tax for over 30 million workers, pensioners and savers, resulting in the average taxpayer being £175 better off a year. It will be the first cut to the basic rate of income tax in 16 years – and perhaps cynics will point out it comes into play just before the next general election, due to be held that year.
The chancellor announced a cut to fuel tax by 5p per litre, effective immeditaely, until March 2023. This reduction, is calculated to represent a £5 billion saving; or in basic terms, £100 for the average car driver, £200 for the average van driver, and £1,500 for the average haulier. Rather predictably, this "saving" had very little affect on garage forecourts.
There is a "green" tax cut, with the VAT 5% rate on energy saving materials cut to zero – including energy saving insulation and solar panels – to run for the next five years. It also permanently brings both wind and water turbines back into scope of the relief.
Please note that the above report is only our brief interpretation and understanding of the Government's budget proposals for the 2022 Spring Statement, delivered to Parliament by Rishi Sunak on Wednesday 23rd March 2022. These provisions are normally confirmed upon the receipt of Royal Assent later in the year. Jonathan Davis and his associates can not be held responsible for any errors, omissions or changes to the above.