It's that time of year again when we dust off our calculators, sharpen our pencils, and dive into the exciting world of budgets. But fear not, because this year's Spring Budget is bursting with more excitement than a field of daffodils in full bloom!
On 6th March 2024 the chancellor, Jeremy Hunt unveiled the Spring budget for 2024, coming into effect at the start of April 2024.
Announcing changes to National Insurance, Child Benefit, Property Gains Tax, and the list goes on.
Below is a summary of what the Budget had to offer:
- Self Employed national insurance rates will drop from 8% to 6%.
- National Insurance contributions for employees are being cut from 10% to 8% meaning most workers will pay less in National Insurance and are set to benefit from the change.
This is the second cut to National Insurance this year.
- The High-Income Child Benefit Charge, which hits payments if one parent earns above £50,000 a year, is to move to a household-based system. The threshold will rise to £60,000 from April in the meantime. The top of the taper where it is withdrawn is raised to £80,000.
- Property gains tax for high-rate taxpayers being reduced from 28% to 24%.
- Furnished Holiday letting tax regime being abolished because there are not enough properties available for long-term rental by local people.
- Creative Industry tax credit enhancement for film and tv productions to boost the British Film industry.
- A new British ISA will allow a £5,000 annual investment into in UK businesses. It includes all the tax advantages of other ISAs and will be on top of the existing allowances.
- To help people save, a new British Savings Bond, delivered through NSNI, will offer a guaranteed rate - fixed for three years on deposits of between £500 and £1 million, although we do not know yet what the rate will be.
- VAT registration threshold for businesses increases from £85,000 to £90,000. The Chancellor claims this change will take around 28,000 small businesses out of paying VAT altogether.
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Spring Budget 2024 | NBAS Chartered Accountants 2024
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