Source: QuickBooks
The Chancellor Jeremy Hunt delivered his Spring Statement to Parliament on 06 March 2024. Some of the key initiatives that may impact both your clients are listed below.
There was a lot of ground covered in the Chancellor’s Spring address to Parliament, and the following list is not extensive of all the announcements made. You can read the full UK Spring Statement on the GOV website here.
Main rate of National Insurance cut by 2p
From 06 April 2024 the main rate of National Insurance for employees will be reduced by 2p, representing a reduction from 10% to 8%. This change will benefit the average employee by roughly £470 per year.
QuickBooks Payroll will automatically be updated to reflect these changes for all employees.
Meanwhile, self-employed National Insurance contributions will be reduced from 8% to 6%, meaning the average self-employed person earning £28,000 a year will save £650 per year.
VAT registration threshold increased
On 01 April 2024, the minimum threshold for when businesses need to become VAT registered will be increased from £85K to £90K.
Business tax cuts
The Chancellor shared that full expensing will soon also apply to leased assets. We’ll keep you updated when a date is announced for this change.
Furthermore, the post pandemic Recovery Loan Scheme has been granted a further £200M in funding to help up to 11K small businesses get the finance they need. This will be renamed the Growth Guarantee Scheme.
New British ISA announced
A brand new British ISA will allow savers up to £5K additional annual tax-free investment into UK stocks. This means savers can support UK business and get better returns than a traditional saving account.
Capital Gains tax
The higher rate of Capital Gains tax on residential property is to be reduced from 28pc to 24pc, this change is designed to encourage the sale of more property.
Fuel Duty cut
Fuel Duty will be frozen for another year, whilst the temporary 5p cut to fuel will be maintained. This will be revisited in 12 months.
Furnished Holiday Lettings tax
From 06 April 2025 the Furnished Holiday Lettings tax regime will be abolished. This means that short-term and long-term lets will be treated the same for tax purposes.
Multiple Dwellings Relief
From 01 June 2024 the multiple dwellings relief, a bulk purchase relief for Stamp Duty will be abolished.
Leveling up fund
There was confirmation of details announced previously on the Investment Zones and the extension of the program from 5 to 10 years in Scotland and Wales to match the action announced in England during the Autumn Statement. In addition the Government has agreed a deeper “trailblazer” devolution deal with the North East Mayoral Combined Authority.
We hope you’ve found this roundup helpful, and look forward to supporting your practice in the months and years ahead.