What are the key points in the Spring Budget 2022 that effect payroll?
The Spring mini-budget on the 23rd March 2022 had a few surprises in it that effect the next tax year like:
The national insurance threshold for employees has increased to £12,570 from 6th July 2022. This is an increase from £9,880 which will be in place from 6th April until 5th July.
Directors national insurance contributions will be £11,908 for 2022-23. This is to average out the NI contributions at £9,880 for 13 weeks and £12,570 at 39 weeks. From 2023-24, they will get £12,570.
Employment allowance is rising from £4,000 to £5,000 per year for eligible businesses. This will take effect from 6th April 2022.
From 2024, the basic rate of tax will drop to from 20% to 19%.
As we get more information over the next few days, we will be delving into how this effects your business and your employees.
If you want to read about the key areas, the government have released a few factsheets.