Attention Business Owners,
We’ve got the latest scoop on the recent Spring Budget announcement by the chancellor. Buckle up because there’s a lot to unravel, but we’ve got you covered with the need-to-knows.
Let’s dive into the highlights:
National Insurance Contributions Relief
Good news! National Insurance Contributions are getting slashed again. This means more money in your pocket. For employees, the main rate of employee National Insurance is dropping from 10% to 8%, saving the average worker over £900 a year. Self-employed folks are also in luck with a reduction from 9% to 6%.
VAT Threshold
The threshold for VAT registration is climbing up to £90,000. While some debate its impact, it’s aimed at supporting small business growth.
Economic Boost
Inflation is down, and the economy is revving up. With forecasts showing growth on the horizon, it’s a positive sign for businesses.
Recovery Loan Scheme Extension
The post-pandemic recovery loan scheme is extending its support to small businesses with an additional £200 million in funding.
Leased Assets
The chancellor hinted that full expensing for leased assets will come soon, but it’s not clear when, likely when it’s affordable.
Child Benefit
The threshold for the high-income child benefit charge is going up from £50,000 to £60,000. The upper limit for which the benefit is fully removed is also increasing from £60,000 to £80,000. There are also plans in the future to switch this approach from an individual income basis to a household income basis. However, no date has been put on this further change.
Housing and Savings Incentives
Property owners will see a reduction in Capital Gains Tax on residential properties, and there’s a new UK ISA allowing for tax-free investments in British businesses.
Creative Industries Boost
Over £1 billion in tax reliefs are being introduced for the UK’s creative industries, offering support for film studios, independent films, and more.
Now, for the not-so-great news:
Property Tax Changes
The Furnished Holiday Lettings tax regime and multiple dwelling stamp duty relief are on the chopping block.
Non-Dom Tax Regime
Tax breaks for non-domiciled residents are being phased out starting April 2025.
Tobacco and Vaping Tax
Brace yourselves, smokers and vapers, as taxes on these products are set to rise in the coming years.
HMRC and Tax Enforcement
The government is beefing up HMRC’s capabilities to collect more tax, so it’s wise to stay on top of your tax affairs.
In conclusion, while there are some wins and losses in the budget, it’s essential to stay informed and adapt your business strategy accordingly. We’re here to help navigate these changes and ensure your business thrives.
