Breaking Payroll News
On 23rd 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.