As with The Autumn Statement, we put together a quick blog to share the important updates from The Spring Budget without the all the jargon.
Changes that will affect employees:
- The main change announced in the spring 2024 budget was a reduction of 2% in National Insurance contributions for employees from April.
Changes that will affect the Self-employed:
- As in The Autumn Statement, the national insurance reduction has also been passed onto the self-employed. With a reduction of 2% Class 4 national insurance, taking contributions down to 6%.
Due to the high employment figures, these reductions have not been passed on to employers, who are still paying NI contributions at 13.8%. This is unlikely to change until unemployment begins to rise.
Changes to the VAT threshold:
- The compulsory VAT registration threshold is increased from £85,000 p.a. to £90,000 p.a. with the de-registration threshold increasing to £88,000 p.a.
Changes to capital gains allowance:
- The higher rate capital gains tax from the sale of properties will be reduced from 28% to 24%.
- As announce in The Autume Statement, last year’s capital gains tax free allowance of £6,000 p.a. is being reduced to £3,000 p.a.
Other tax updates:
- The Child Benefit disqualification income allowance is increased from £50,000 p.a. to £60,000 p.a with a sliding scale of reduction between £60,000 – £80,000.
- The classification of “furnished holiday lettings” is to be removed over the next 4 years by annual steps of 25% per year. Eventually, furnished holiday lettings will be treated in the same way as “buy-to-let” and investment properties currently are.
If you have questions on other announcements or wish for more information regarding the above changes, our team is always available to answer your questions.