Chancellor Jeremy Hunt delivered the UK Spring Budget on 6 March 2024. Read on for a summary of the key points affecting small businesses and their owners.
Personal Tax and National Insurance
Rates of income tax remain unchanged at 20% for Basic Rate Taxpayers and 40% Higher Rate.
The tax free Personal Allowance remains frozen until April 2028 at £12,570 as do the Basic and Higher Rate thresholds (HR threshold is £50,270).
👍 From 6 April 2024 employee's National Insurance (on earnings over £12,570 per year) rate will fall to 8% (from 10% since 6 January 2024, and from 12% prior to that).
👍 National Insurance for the self-employed (Class 4, on earnings over £12,570 per year) rate will fall to 6% (from 9%). And, Class 2 NI is abolished (was £164 per year standing charge).
High Income Child Benefit Charge (HICBC)
👍The High Income Child Benefit Charge (HICBC) is a tax charge that applies to higher earners who receive Child Benefit, or whose partner receives it. The threshold at which this charge kicks in will increase to £60,000 from April 2024 (from £50,000).
Other
👍 VAT: The VAT registration threshold will increase from £85,000 to £90,000. See: When Should you register for VAT.
Capital Gains Tax (CGT): The Annual Exemption will fall again from £6,000 per person to £3,000 from April 2024. The CGT rate on on residential property gains will fall from 28% to 24%. The basic rate will remain at 18%.
National Minimum Wage to increase by 9.8% to £11.44 per hour from £10.42 (for those aged over 21), see: National Minimum Wage rates from April 2024
Making Tax Digital (MTD): The self-employed with a turnover over £50,000 to be compliant with MTD from April 2026 (if turnover > £30,000 from April 2027). For more on what this means practically see: How MTD for Income Tax will affect small businesses
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