The Spring Statement was delivered on 23rd March and although it is not a mini budget, it contained the following changes designed to help families, particularly in light of inflation having been announced at 6.2%. The highlights of this are as follows:
- Petrol and Diesel duty will be cut temporarily for 12-months by 5p per litre from 23 March 2022.
- VAT relief for the installation of energy saving materials (ESMs) will be extended.
- The primary threshold for Class 1 National Insurance Contributions (NICs) will increase from £9,880 a year to £12,570 a year from 6 July 2022, which brings it in line with the frozen personal allowance.
- For the self-employed, the lower profits limit will increase from £9,880 to £11,908 in 2022/23, rising to £12,570 in 2023/24. Class 2 NICs will not be payable if profits are below these limits. The maximum potential Class 4 NICs saving in 2022/23 is £208.
- The employment allowance will be increased to £5,000 from April 2022.