What does the Spring Statement 2022 mean for our clients?
Below you will find a brief summary of what the Spring Statement means for small and medium sized enterprises and the self-employed.
Measures to help small and medium sized enterprises (SME’s)
- Business rates multiplier will be frozen in 2022-23, meaning no increase in charges until April 2023. Eligible retail, hospitality and leisure businesses will also benefit from a 50% business rates relief.
- The government is subsidising the cost of high quality training – ‘Help to Grow – Management’ offers businesses 12 weeks of leadership training with the government covering 90% of the cost. The cost of apprenticeship training is 95% subsidised for SME’s that do not pay the apprenticeship levy.
- To support businesses to invest and grow the temporary £1,000,000 level of annual investment allowance has been extended to 31/03/2023.
- To support SME’s create new jobs from April 2022 the employment allowance will increase to £5,000 per year.
Measures to help the self-employed
- The annual national insurance primary threshold and lower profits limit for employed and self-employed respectively will increase from £9,880 to £12,570 from July 2022.
- From April 2022 self-employed individuals with profits between the small profits threshold and lower profits limit will not pay class 2 NIC.
- From April 2024 the basic rate of income tax will drop to 19%.
To read the Government’s Spring Statement in full please click here.