Skip to main content

Spring Budget 2024: Guide for Small Business Owners

By 06/03/2024No Comments
Spring Budget 2024

We have detailed some key changes further to Chancellor Jeremy Hunt’s announcements in the 2024 Spring Budget earlier today as follows;

Personal Tax

  • The employee’s national insurance rate is cut from 10% to 8% from 6 April 2024, worth around £450pa for an employee on an average salary.
  • The High-Income Child Benefit Charge is increased from £50,000 to £60,000 from April 2024, with the tapered amount increasing from £60,000 to £80,000. The High-Income Child Benefit Charge will be assessed on household income by 2026.
  • The tax-free personal allowance, currently set at £12,570, is frozen until 2028.
  • The higher rate capital gains tax on additional properties has been reduced from 28% to 24%, from April 2024 – the main rate will remain at 18%.

Business Tax

  • Class 4 NIC for self-employed workers is going to be reduced from 8% to 6% from April 2024, in line with the 2p cut for employed workers.
  • The threshold for VAT registration will increase from £85,000 to £90,000 from April 2024 – this has previously been frozen for the past 7 years and will take 28,000 small businesses out of paying VAT altogether.
  • The Full expensing regime for capital allowances, in which companies can claim 100% capital allowances on qualifying plant & machinery, will now include leased assets.

Other Spring Budget 2024 Key Points

  • The furnished holiday lets (FHL) regime, which offers tax advantages to those who let out a property as a holiday home, will be abolished in April 2025. Budget documents said this would raise £600mn by 2028-29.
  • Stamp Duty Multiple Dwellings Relief is to be scrapped from June 2024.
  • The government will create a “British” ISA in the form of an extra £5,000 tax-free allowance for the public to invest exclusively in the UK.
  • The chancellor has announced he is freezing fuel duty, along with keeping the “temporary” 5p cut, which means fuel duty will stay at 53p per litre. He says this will save the average car driver £50 next year.
  • The non-dom tax regime, for UK residents whose permanent home is overseas, is to be replaced with new ‘simplified’ rules from April 2025.
  • There will be a freeze on alcohol duty, which had been due to end in August, to continue until February 2025.
  • A new tax on vaping products is to start in October 2026, following a consultation. Existing tax on tobacco to increase, to maintain the “financial incentive to choose vaping over smoking”
  • The chancellor says forecasts from the Office for Budget Responsibility show the economy will grow by 0.8% this year and 1.9% next – 0.5% higher than forecasted in the Autumn statement.

If you want to know how any of the above will affect your business or you personally, please get in touch with Direct Peak Accountants today.