The Key Takeaways of the Spring Budget 2024
6 March 2024
Chancellor Jeremy Hunt has just rolled out the Spring Budget 2024, and it’s brimming with updates aimed at steering the UK through these tricky economic times and into a brighter future. With an eye on the upcoming general election, this budget is designed to ease financial pressures and fuel growth.
Here’s a straightforward rundown of what’s in store, especially for our business community and hardworking individuals:
National Insurance Takes a Dip
Good news for your wallet! Starting April, National Insurance Contributions will see a decrease from 10% to 8%. For those earning a salary or self-employed, this means keeping more of your earnings. If you’re on a £35,000 salary, expect to save about £450 a year.
VAT Threshold Uplift
For the small business owners and freelancers among us, the VAT registration threshold is getting a boost from £85,000 to £90,000 starting this April. It’s a helpful nudge to reduce some of the paperwork and financial stress, although it’s a tad shy of the £100,000 many hoped for.
Easier on Property Sellers
Planning to sell property? The tax on profits just got a bit lighter, dropping from 28% to 24%. It’s a move that’s expected to encourage more transactions in the property market.
Business Tax Cuts
The Chancellor has rolled out a £10bn tax cut for UK business investments, known as “full expensing,”. Plus, leased assets now qualify for tax relief, broadening the horizon for business investments. There’s also a £200m boost to the Recovery Loan Scheme to help small businesses grow, and some special perks for the creative industries, including film studios and independent films.
Child Benefit Becomes More Generous
The child benefit is becoming more accessible, with plans to adjust eligibility based on household income and immediate increases in the threshold and taper rates. This means more support for parents navigating the cost of raising kids.
Fuel Duty Freeze Continues
Drivers will breathe a sigh of relief as the fuel duty freeze goes on for another year, keeping costs down at the pump.
Introducing the ‘British ISA’
And for those looking to invest, the new ‘British ISA’ offers a £5,000 tax-free allowance for investments in UK equities. It’s a fantastic opportunity to support and benefit from the growth of UK businesses.
Staying Informed on the Spring Budget 2024 with Simon & Co
As we unpack the implications of these changes, Simon & Co is here to guide you through. If you’re feeling overwhelmed or just have a few questions, we’re only a call or an email away. Let’s make these updates work for you.
