Ross Boyd, Director at RB+ Chartered Accountants, commenting on the announcement of the spring statement said: “The Chancellor’s spring statement will be remembered by local businesses for what he didn’t announce, rather than what he did.
“Whilst there are welcome initiatives to tackle cost of living, inflation is at a 30 year high, and is projected to rise to close to 9% by the end of this year, meaning that there is more pressure than ever on people’s pockets.
“The Chancellor remains committed to progressing tax generating initiatives, all of which will put a high tax burden on local businesses whilst the National Insurance increase is going ahead on 6th of April 2022 despite calls for it to be delayed amid cost of living fears.
“To help combat the National Insurance increase the chancellor has also increased the threshold by £3,000 from July to bring it in line with Income Tax Personal allowances. Individuals who earn under approximately £35,000 may be better off but those earning more than this will feel a decrease in their net salary.
“The announced one pence decrease in Income Tax will hopefully be in place by 2024, but only if all other tax plans are implemented successfully.
“There is of course also the increase in VAT in the hospitality sector which will put the sector under pressure and the planned increase in corporation tax to 25% in April 2023.
Ross Boyd
Finally, the anticipated five pence fuel duty cut coming in at 6pm this evening, will be in force for longer than expected until March 2023.
“In our opinion this is ‘stealth management’ from the Chancellor – the tax burden is undeniably increasing for the people of Northern Ireland. We will have to wait to the Autumn budget as many announcements have been delayed until then,” Ross concluded.
