Spring Statement 2022 Tax Calculator: What Does It Mean For You? Business News

Rishi Sunak shielded low-income people from the impact of his National Insurance hike, cut fuel taxes by 5p and promised to cut income tax by 1p in 2024 in his spring statement.

In Wednesday’s mini-budget, the chancellor promised ‘the biggest net cut in personal taxes for more than a quarter of a century’, but households still face a record drop in living standards amid a surge inflation and the economic impact of the war in Ukraine.

Mr Sunak has unveiled a plan to raise the threshold at which people start paying National Insurance contributions from £3,000 to £12,570 from July, as part of crisis relief plans of the cost of living.

He pledged further support in 2024 by pledging to cut the basic rate of income tax from 20 pence to 19 pence, as well as scrapping VAT on energy-efficient materials such as solar panels , heat pumps and roof insulation for five years.

Despite the measures announced by the Chancellor, the overall tax burden is expected to reach its highest level since the late 1940s by 2026-27.

Obviously, there is a lot to consider. The online calculator below, created by accountants Blick Rothenberg, offers a quick estimate of how the latest round of changes will affect you.

Enter a few details and it will give you an indication of the improvement or deterioration of the Chancellor’s announcements that will leave you in your pocket.

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This notice was published: 2022-03-23 19:08:59

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