Highlights for business in the Chancellors Statement and commentary by Walker Thompson
1) Fuel Duty reduced by 5p per litre – with fuel at its highest ever prices no changes are made to the tax free mileage rates which have been at 25p and 45p for a long time
2) National Insurance lower limit is to rise in July to £12,570 – Directors on minimal salary + dividend packages may need to revise their salary to ensure continued benefits
3) VAT on tourism and hospitality to return to full rate from April
4) Changes to Research & Development to allow previously exempt costs – the SME scheme will be barely touched whereas large companies will benefit
5) Employment Allowance which gives relief against payroll costs has been increased to £5,000 from April 2022 – This is classed as State Aid and could impinge on certain other grant type claims