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Spring Statement 2022

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Summary

This guide provides the key points from the UK Spring Statement 2022 which may affect your processing in Sage 50 Accounts.

Description

Business taxes and other duties

  • There was no extension to the previously reduced VAT rate for Tourism and Hospitality so the VAT rate will return to 20% from 1 April 2022 as expected.

  • From 1 April 2022 there will be a reduction of the VAT on energy saving materials such as solar panels, heating pumps and roof insulation from 5% to zero for five years.

  • Fuel duty was cut by 5p per litre from 6pm on 23 March 2022 for 12 months.

  • R&D tax reliefs will be reformed, with qualifying expenditure to include storage of data and pure mathematical costs from April 2023.

Personal tax

NOTE: For all new payroll legislation coming into effect in April 2022, take a look at our legislation guide >

  • From 6 April 2022, the Employment Allowance increases from £4,000 to £5,000.

  • From 6 July 2022, the National Insurance threshold will be raised by £3,000, meaning employees must earn £12,570 per year before paying National Insurance.

  • From 2024, the basic rate of income tax will change from 20% to 19%, this means no action is needed until then.

To find out more details, please visit GOV.UK >