Spring Budget 2024 – did you catch it?

 

Here’s a quick roundup of how businesses and individuals will be affected from April 2024:

 

The main rate of employee National Insurance (Class 1) is being cut by 2p from 10% to 8%.

 

Combined with the 2p cut announced at Autumn Statement 2023, this will save the average worker on £35,400 over £900

a year.

 

The main rate of self-employed National Insurance (Class 4) is also being cut by a further 2p on top of the 1p cut announced at Autumn Statement 2023, reducing from 9% to 6%.

 

Combined with the abolition of Class 2, this will save an average self-employed person on £28,000 around £650 a year.

 

The High Income Child Benefit Charge income threshold is being raised to £60,000 (currently £50,000), taking 170,000 families out of paying this tax.

 

The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000 (currently £60,000).

 

The estimate is that nearly half a million families will gain an average of £1,260 in the next tax year as a result.

 

The sales threshold for VAT registration is being increased to £90,000 on a 12-month rolling basis (currently £85,000).

 

You can visit the budget in more detail on the Government website here.

 

If you need any support with your business taxes or advice on how this affects you, please give us a shout and we’d be happy to schedule in a meeting to discuss how we can help you.