The chancellor, Rishi Sunak, included a range of measures in the Budget on 23rd March that will affect small businesses as coronavirus measures are eased. 
We have also included rate changes coming in from April which have already been announced.  
New Announcements 
National Insurance – The earnings threshold at which people pay National Insurance is increasing from £9568 to £12750 on 6th July 2022 for the financial year 2022-23. This will offset some of the 1.25% rise announced in the Autumn Budget.  
The threshold was already set to increase to 12.35% for employees, £15.05% for employers and 10.25% for Self Employed from April 2022 for a basic rate tax payer. 3.25% for a higher rathe tax payer 
Employment AllowanceThe employment allowance for businesses is increasing from £4000 a year to £5000. Meaning if you pay less than £5000 a year in employers National Insurance you won't pay anything. If you do pay employers National Insurance you won't pay anything for the first £5000.  
Personal Tax – Rishi Sunak has pledged to lower personal tax to 19% from 20% from April 2024.  
The income tax threshold remains frozen at £12570 and £50,270 for the higher rate until 2026.  
Reduction in VAT on renewables - homeowners installing energy efficient renewables such as solar panels, heat pumps or insulation will pay 0% VAT instead of 5% for the next 5 years.  
Changes from April announced in previous budget:  
National Minimum Wage - National Living Wage will rise from £8.91 to £9.50 an hour for those aged 23 and over, which is an increase of 6.6%. 
This will add £1,000 a year to the income of someone in a full-time role working about 35 hours a week. 
Dividend Tax - Dividend tax is increasing by 1.25% April 2022 in line with the National Insurance increase.  
If you would like to review your business finances following the Budget announcements, please get in touch. 
Tagged as: Allowances, budget, tax
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