Rishi Sunak delivered the Sprint Statement with a few gains for businesses. He stated that SMEs support 16.3 million jobs – 61% of total private sector employment* – and a strong economy relies on the entrepreneurship of small businesses across the United Kingdom.
There were positive statistics for businesses with Rishi stating that the total number of payrolled employees now over 600,000 above pre-pandemic levels total number of payrolled employees in February 2022 2.3% above pre-pandemic levels.. Tax receipts have been stronger than expected, Unemployment has fallen steadily for twelve consecutive months to below its pre-pandemic rate (three months to February 2020) at 3.9% in the three months to January 2022
Basic rate of income tax will reduce to 19% in 2024, this is the 1st cut in the basic rate of income tax in 16 years. A three-year transition period for Gift Aid relief will apply, to maintain the income tax basic rate relief at 20% until April 2027.
National Insurance Primary Threshold and Lower Profits Limit from £9,880 to £12,570, from July 2022. This aligns the Primary Threshold and Lower Profits Limit with the income tax personal allowance.
The business rates multiplier will be frozen in 2022-23 resulting in a tax cut worth £4.6 billion over the next 5 years for rate payers.
A temporary 50% Business Rates Relief will be available for eligible retail, hospitality, and leisure businesses
Increases from April 2022, eligible employers will be able to reduce their employer NICs bills by up to £5,000 per year (worth up to £1,000 per employer) meaning businesses will be able to employ 4 full-time employees on the National Living Wage without paying employer National Insurance Contributions.
A temporary 12 month cut to duty on petrol and diesel of 5p per litre,
% VAT on energy saving materials so households can save on energy saving materialsEverything Else
The Annual Investment Allowance increases from £200,000 to £1 million until March 2023;
The government is investing £161 million over the next 5 years to increase compliance and debt management capacity in HMRC.
* Business population estimates for the UK and regions 2021: statistical release, BEIS, October 2021.