Today, the UK Chancellor of the Exchequer, Rishi Sunak, delivered the UK’s 2022 Spring Statement, which has been keenly anticipated in the midst of the “cost of living crisis” currently affecting the country.
On the personal tax front, there were ultimately a limited amount of significant announcements, however, the key points for your consideration are as follows:
- The National Insurance Threshold for both employed and self-employed individuals will be increased by £3,000 to £12,570 from July 2022, bringing it in line with the Personal Allowance threshold for income tax.
- The Chancellor has promised that the basic rate of income tax will be cut by 1% to 19% by the end of the current parliament in 2024.
- However, the 1.25% rise in National Insurance rates, from 12% to 13.25% will still be going ahead from April 2022.
It should also be noted that the government will be investing significant funds to HMRC to increase its capacity in dealing with compliance matters and bring in extra revenue.
If you have any questions or would like to discuss how the 2022 Spring Statement, or any potential US tax changes, may impact your tax affairs, please do not hesitate to contact us.