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Guide to the 2022 Spring Budget Statement

25 March 2022

Rishi Sunak Budget 2021

The Chancellor of the Exchequer, Rishi Sunak, delivered the Spring Forecast Statement to Parliament on Wednesday 23rd March 2022.

Our team has prepared a summary of the key announcements including comment on how they affect both individuals and businesses across the UK. Here’s what you need to know:

·         The threshold for National Insurance (NI) contributions will increase by £3,000 from July
         o This means you won’t pay NI until you’re earning £12,570 (aligning it with the current tax-free personal allowance)

·         Basic rate income tax planned to drop from 20% to 19% in April 2024
         o Scotland and Wales have the right to set their own rates of income tax, so the rate of tax you pay may depend on where you live in the UK. This could have some impact on the tax relief you get on pension contributions
         o For the 2022-23 tax year the basic rate of income tax will remain at 20% on earnings between £12,570 and £50,270

·         Fuel duty was cut by 5 pence per litre, among other measures aimed at easing the pressure on household budgets

·         There were no major changes announced in regard to pensions, so savers can plan for the new tax year with confidence

·         The State Pension will rise by 3.1% from April 2022, as confirmed in the Autumn 2021 Budget
         o This will affect you whether you’re eligible for the new flat-rate State Pension, which was introduced in April 2016, or the older basic State Pension
         o From April 2022 those qualifying for a full new State Pension will receive £185.15 a week (up from £179.60). And those who reached State Pension age before April 2016, who are on the older basic State Pension, will now receive £141.85 – up from £137.60.

Read More:
Guide To Spring 2022 Forecast Statement

Jason Marley

Who to contact

Jason Marley

Jason Marley

Jason is responsible for leading the Kerr Henderson Workplace Pension and Financial Planning teams. A core part of his role is developing our business strategy to ensure we continue to deliver a market leading, independent, value for money service to our clients.

Jason has over 20 years’ experience in financial services. He has previously run his own business and worked for one of the world’s largest professional services companies. He specialises in providing advice to corporate clients in respect of:

- workplace pension obligations
- structuring and maintaining a good pension/benefit governance framework and
- how to create good corporate and people outcomes by harnessing the power of workplace pensions and employee benefits

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