In his Budget speech of 15 February 2022, the Minister for the Treasury, the Hon. David Ashford MBE MHK, announced various taxation and National Insurance measures.
Following the Budget, the Income Tax Division of Treasury has today published 2 Practice Notes:
Budget 2022 – Tax and National Insurance Headlines
- The income tax personal allowance will increase to £14,500 for a resident individual and £29,000 for a jointly assessed couple
- The income tax lower rate for individuals remains at 10% and the higher rate at 20%
- The threshold at which the higher rate becomes payable remains at £6,500 for an individual and £13,000 for a jointly assessed couple
- The Upper Earnings Limit for Primary Class 1 National Insurance contributions is remaining at £823 per week
- The thresholds at which both employees and employers start to pay Class 1 NIC are remaining at £138 per week
- The Class 2 Small Earnings Exception Limit and Class 4 Lower Profits Limit are remaining at £7,176 annually. The Class 4 Upper Profits Limit is remaining at £823 per week
- The Lower Earnings Limit is increasing from £120 per week to £123 per week
- The Class 2 contribution payable by a volunteer development worker, which is linked to the Lower Earnings Limit, will increase to £6.15 per week
- The Class 3 voluntary contribution rate will increase to £15.85 per week
- Persons in receipt of War Pensioners Mobility Supplement will be entitled to a deduction of £2,900 from their total income
- A new “TT Homestay Allowance” will replace the previous extra statutory concession.