Spring Mini-Budget - Key Points
Following Chancellor Rishi Sunak’s Spring Mini-Budget this afternoon, please see below some of the key points.
Ahead of this Mini-Budget, the Chancellor had already announced a new “Social Care Levy” that starts on 6 April 2022.
From 06/04/22, National Insurance contributions will increase by 1.25 percentage points. This will be spent on the NHS, health and social care in the UK.
The increase will apply to:
- Employers Class 1.
- Employees Class 1.
- Class 1A on Benefits.
- Class 1B.
- Class 4 for Self Employed.
There will also be a 1.25% increase on each of the income tax rates on dividend income.
Key Points Announced Today In The Mini-Budget:
- While the above NI increase remains in place, Mr Sunak announced that the income threshold for at which point people start paying National Insurance will rise to £12,570 in July, which Mr Sunak said was tax cut for employees worth over £330 a year.
- Small Business Owners: The Employment Allowance, which gives relief to smaller businesses' Employers National Insurance payments, will increase by £1000, up to £5,000 from April 2022.
- Mr Sunak pledged to cut basic rate of income tax from 20p to 19p in the pound in 2024 before the end of this Parliament.