After cutting National Insurance yet again in yesterday’s Budget, Chancellor – Jeremy Hunt, claims people on the average wage will be better off. Gooding Accounts’ Partner Sam gives an overview on the key points from the Budget Day announcement.
Budget Highlights
The main rate of class 1 employee national insurance contributions (NICs) will be cut from 10% to 8% with effect from 6 April 2024 and the main rate of class 4 self-employed NICs will also be reduced from 8% to 6%.
The high income child benefit charge (HICBC) will be reformed, increasing the HICBC threshold to £60,000 from April 2024. The rate at which HICBC is charged will be halved so that child benefit is not fully withdrawn until individuals have an income of at least £80,000. HICBC will apply on a household rather than an individual basis by April 2026.
An additional UK individual savings account (ISA) will be created with a £5,000 allowance in addition to the current £20,000 ISA limit.
The higher rate of capital gains tax (CGT) for residential property disposals will be cut from 28% to 24% from 6 April 2024.
The furnished holiday lettings tax regime will be abolished from 6 April 2025.
The value added tax (VAT) registration threshold will rise from £85,000 to £90,000 from 1 April 2024. The deregistration threshold will rise from £83,000 to £88,000.
The non-UK domicile rules will be replaced, from 6 April 2025, with a regime based on residence.
Your Gooding Accounts’ client manager will be providing more detail on how the budget will affect you, if you’d like a copy please contact us at info@goodingaccounts.co.uk
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Take a look at some fabulous lots on offer and help us raise funds for this fantastic local charity in Gooding Accounts' final charity event of 2024.
The first Budget from the new Labour Government delivered at the end of October has certainly created plenty for business...
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