Spring Statement 2022: Employment allowance will increase to £5,000

Effective from 6 April 2022

Ayesha Venkataraman
clock • 2 min read

Chancellor Rishi Sunak announced a new tax cut worth up to a £1,000 for half a million small businesses starting on 6 April 2022 in his Spring Statement on Wednesday.

Sunak told parliament he set out a series of measures to help businesses boost investment, innovation, and growth including the increase in employment allowance in response to the specific calls from small businesses. "The employment allowance cuts small businesses tax bills, making it cheaper to employ workers," he said in parliment. "In my first budget two years ago, I increased that allowance. "Today, I'm going further. From April the employment allowance will increase to £5,000, that's a new tax cut worth up to a £1,000 for half a million small businesses starting in just two week...

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