Breaking Payroll News: Spring Statement

Breaking Payroll News

Spring Statement

On 23^rd March 2022 the Chancellor, Rishi Sunak, has delivered the Spring Statement and it contained several announcements that will affect payroll for both businesses and their employees.

Below is a brief overview of the headline changes:

• From April 2022 Employment allowance, available to certain eligible business, will be increased from £4,000 to £5,000.
• From July 2022, the threshold at which individuals begin paying NI will be aligned with that of income tax. This means that the primary threshold will be set at £12,570. This is worth over £330.00 a year.
• From April 2024 the government will reduce the basic rate of income tax from 20% to 19%

The devil will be in the detail, and once the ‘back up’ documentation has been released we will update our blogs with more information on the changes.