With inflation rising and households facing the largest ever recorded cost-of-living squeeze, Chancellor Rishi Sunak delivered the government’s Spring Statement last Wednesday.
Below are some of the key points. As we near the start of the new tax year, please talk to us about any of the changes and how they may affect your business, we are here to support you.
- Inflation is likely to average 7.4% for the rest of the year, rising from its current level of 6.2%
- The economy is forecast to grow by 3.8% this year and then 1.8% in 2023 and 2.1% in 2024
- To help the most vulnerable, Local Authorities will receive further government support of £500m for the Household Support Fund from April
- Fuel duty was cut by 5p a litre
- To counteract some of the impact of the impending 1.25% percentage point increase in National Insurance Contributions (NICs), the income level at which individuals start paying NICs will rise from £9,880 to £12,570 in July
- The Employment Allowance, which gives relief against smaller businesses’ employer NICs, will increase from £4,000 to £5,000 from April.
You can read our full Spring Statement Summary Report here.
With the end of the tax year fast approaching, now is a good time to review your business and personal finances to ensure that they are as tax efficient as possible.
We can help make sure that you don’t miss out on any money-saving opportunities.
Please click on the link to read our 2021/22 Year End Tax Planning Guide, which contains practical guidance and ideas to implement before 5 April 2022, including information on:
- Tax and your family, ensuring your affairs are conducted in the most tax-efficient way legally possible
- Using tax allowances
- Planning for the future: investments and pensions
- Tax-free saving for children
- Making use of inheritance tax exemptions.
Contact your usual Beavis Morgan group partner or email info@beavismorgan.com for practical, one-to-one tax advice that is tailored to your needs.