Spring Statement  

No quick fixes in chancellor's spring statement

  • Identify key elements of the spring statement
  • Explain the impact of the spring statement
  • Explain the impact of the tax plan
CPD
Approx.30min

Some quick fixes include increasing the £50,000 threshold for the high-income child benefit charge, abolishing the tapering of the personal allowance for income above £100,000 and removing the limitations to the pensions annual allowance for tax relievable pension contributions.

The chancellor’s spring statement measures will cost the Treasury just over £35bn in total, but the government will benefit by £114bn, by what came before.  

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If the inflationary pressures can ease and the economy grows beyond the latest projections, the tax bar is set high enough for Sunak to add to his tax plan and start the journey to be a low-tax chancellor.  

But there is a long way to go for the remainder of this parliament and not much contingency.  

So, the tax plan is to be continued at the autumn Budget 2022.

Nimesh Shah is chief executive of Blick Rothenberg

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. True or false, under the health and social care levy bill, Class 1 NICs for someone earning less than £50,270 will be 13.25 per cent?

  2. Why is the amount saved from the threshold increase of the Class 1 NICs £267 in the 2022-23 tax year?

  3. Following the NIC threshold increase, why is someone earning £25,000 better-off next year than someone earning over £41,389?

  4. According to the article, a typical family of four with one working parent earning £62,000 will be worse-off in the next tax year by how much, compared to the 2010-11 tax year?

  5. When will the corporate tax increase from 19 per cent to 25 per cent come into force?

  6. True or false, the health and social care levy will ease the NIC burden for businesses by 6.5 per cent?

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  • Identify key elements of the spring statement
  • Explain the impact of the spring statement
  • Explain the impact of the tax plan

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