On 23 March the Chancellor set out the UK Tax Plan as part of the Spring Statement. He announced that the plan would have three phases:

  • tackling the cost of living
  • capital, growth and ideas
  • sharing growth. 

The first phase includes measures announced in the Spring Statement. 

ACCA UK has commented on the Spring Statement.

Tackling the cost of living

  • raising the National Living Wage to £9.50 an hour from April 
  • £350 energy bills rebate for eligible households 
  • fuel duty cut on petrol and diesel by 5p in the pound for 12 months
  • aligning Primary Threshold and Lower Profits Limit with Income Tax Allowance from July 2022 to £12,570
  • increasing Employment Allowance to £5000 per business from 6 April 2022.

Capital, growth and ideas

  • plans announced to cut and reform taxes on business investment
  • build momentum behind the super-deduction scheme 
  • review of incentives for business-led training including apprenticeship levy
  • expanded eligibility for R&D tax relief and continued reform considered for RDEC 
  • engagement with businesses and industry bodies will follow with plans confirmed at Autumn Budget 2022.

Sharing growth

  • cut to basic rate of income tax from 20% to 19% from April 2024
  • simplification programme for tax system – review of reliefs and allowances.

Key dates: 

  • 23 March 2022: cutting fuel duty on petrol and diesel by 5p per litre
  • 6 April 2022:  employment allowance raised to £5000 per business 
  • 6 July 2022: aligning the annual National Insurance Primary Threshold and Lower Profits Limit with the income tax personal allowance, making the first £12,570 of earnings tax free
  • April 2023 (expected from start of tax year - date TBC): cutting taxes on business investment - by reforming Capital Allowances and R&D tax reliefs
  • April 2024 (expected from start of tax year - date TBC): cutting the basic rate of income tax from 20% to 19%.