HSKSG Tax Director Martin Tomes gives his initial reaction to today’s Spring Statement.
The increase in the personal threshold at which earners start paying NIC’s should help the lower paid. The April 1.25% increase is still coming in but the announcements made by the Chancellor will mean anyone earning circa £35k or less will be better off, with the lower paid benefitting the most.
The 5p fuel duty rate decrease for a year is welcome, but all the measures announced are likely to only help marginally although hopefully will mean fewer will have to chose between heating or eating. The cost of living crisis will still place great hardships upon very many though.
Its not clear yet whether employers will benefit from the NIC income threshold reduction. But the Employer Allowance is to increase from £4k to £5k from April.
These are the headline announcements (along with a pledge to reduce the basic rate of income tax to 19% in 2024 – seen as a pre election sweetner).
Click here to read a more in-depth analysis of the Chancellor’s Spring Statement.