Today, The Chancellor after pressure to ease the cost of living crisis has announced some real changes for the small business and individuals. One very significant announcement is the rising of the national insurance threshold by £3,000 in July this year. The Government had planned to put it up by £300 only but the Chancellor said the £3,000 increase will deliver the Governments promise to level up the NIC and income tax thresholds.
What does this mean? From July people will not pay a penny of NIC or income tax up to £12,570 and includes both employed and self employed. Unfortunately there was no change in the national insurance levy increase which will still go ahead but this announcement will be well received and according to the Treasury will save people £330 a year.
His announcements also included:
- Employment allowance to increase to £5,000 from April presently at £4,000. Don't forget to claim this is you a small business employing people.
- Basic rate of income tax to fall to 19% in 2024 from the present 20%.
If you have any queries around maximising your tax benefits from these announcements please do get in contact