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Spring Budget 2024

For all your accounting needs

Yesterday, the Chancellor revealed his budget plan. This budget is very important for the Government and was likely set to get more support from people ahead of the big election. 
You can read the full statement here, but here are the main points:
The Chancellor said that not many people are without jobs. He noted that the cost of borrowing money is high because the Bank of England is trying to lower prices that keep going up. Prices are going up by 4% right now, but they are expected to go down according to the OBR. The UK’s debt is getting smaller, and among the G7 countries, the UK’s debt is almost the lowest. The OBR says the economy will grow by 0.8% this year.
Income Tax and National Insurance 
There were rumours about a lower National Insurance cost, and the Chancellor confirmed this by reducing it by 2p, making it now 8%. For people who work for themselves, National Insurance will go from 8% to 6%. The Chancellor wants to reduce National Insurance more in the future. Even though people thought income tax would stay the same because it’s expensive, this turned out to be true.
VAT Registration Threshold
The limit for registering for VAT will go up from £85,000 to £90,000 starting April 1, 2024.
Child Benefit
The way they decide who should pay more for child benefits will change. Starting in April 2026, it will depend on the whole household’s income. But from April 2024, if you earn £60,000, you will start paying more, and this will increase up to £90,000.
Non-Dom Tax Status
There will be a new way to decide tax based on where you live. The old system will stop, and after four years, people will have to pay taxes like everyone else who lives here.
Alcohol Duty
The tax on alcohol will not increase until February 2025.
Fuel Duty
The tax on fuel will not increase, and the price will be cut by 5p for another year.
Companies will be able to get a tax break for things they lease, with new rules coming later.
There will be a new ISA where you can save an extra £5,000 if you invest in British companies.
Vaping Duty
There will be a new tax on vaping products, with more details to come after people give their opinions.
Air Passenger Duty
People flying not in economy will have to pay more tax.
Furnished Holiday Lets
The tax break for holiday homes will end.
Multiple Dwellings Relief
The tax break for buying several homes will end.
Capital Gains Tax
The tax on selling properties for more than you bought them for will go down from 28% to 24%.
Oil and Gas
The extra tax on oil and gas profits will continue until 2029.
I hope this information helps. Please feel free to reach out if you need further clarification or support.

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