Spring Statement 2022: Factsheet on Personal Tax

At the Spring Statement 2022, the Chancellor announced measures related to National Insurance contributions (NICs) and income tax. This factsheet provides an overview of the announcements.

Spring Statement 2022: Personal Tax Factsheet

Details

As announced at the Spring Statement 2022, the government is raising the level at which people start to pay National Insurance contributions, increasing the annual National Insurance Primary Threshold and Lower Profits Limit from £9,880 to £12,570 from July 2022. This is a tax cut worth over £330 for a typical employee in the year from July. The government is also cutting income tax. Taxpayers will gain £175 on average thanks to a 1ppt cut in the basic rate of income tax in 2024, the first cut to the basic rate in 16 years. Further details on implementation are set out in the background section of this factsheet.