While today’s Budget was not full of surprises, there were several announcements that taxpayers and businesses should be aware of.
You’ll see our handy summary of the key points below. If you would like to discuss how these points impact financial forecasting and tax planning for you and or your business, please let us know.
Individuals
- National Insurance – Class 1 employee NIC is to be reduced from 10% to 8% from next April, involving a cut of 2p in every pound. For the self employed, Class 4 NIC is also to decrease by 2%, from 8% to 6%. This affects earnings/profits above £12,570.
- Child Benefit – from April, the income threshold will rise from £50,000 to £60,000. The point at which the benefit must be paid back in full will rise from £60,000 to £80,000.
- New ‘British’ ISA – savers are to benefit from the chance to invest an extra £5,000 in UK assets, tax free.
- Property Capital Gains Tax – the higher rate of property CGT is to decrease from 28% to 24%.
- Non-dom tax – new rules will apply from April 2025. This affects people whose permanent home is considered to be outside the UK. Would this affect you? If you are affected by non-dom or international tax rules, let’s talk. This is a specialist area of ours – it’s one of our favourite accountancy jobs!
- Holiday let properties – tax breaks are to be scrapped, aimed at increasing the housing stock available as long term lets.
Businesses
- National Insurance – the Class 1 and Class 4 NIC changes outlined above affect tax calculations and payroll systems, coinciding with the April changes to the National Minimum Wage and National Living Wage.
- VAT – the income threshold for compulsory VAT registration is to increase to £90,000 from April this year (currently £85,000).
- An additional £120m will be available for green energy projects (via a government fund).
Lifestyle Announcements
- Fuel and alcohol duties are to remain unchanged for now.
- Smokers are to face tax increases, involving tobacco and vaping product duties.
How does today’s budget affect you?
Would you value business advice based on your numbers, goals and tax requirements?
If you have any queries, please contact the friendly team at re:accounts. We’re happy to answer queries and offer advice. Let’s talk.
