The Spring Budget was void of huge surprises, but we have summarised the key points for Small Businesses below so you have a short summary specific changes that may effect you:
The Chancellor has announced further cuts to National Insurance (NI).
From 6th April, the main rate of Class 4 self-employed NI contributions reduces to 6%. This reflects an additional cut of 2% announced today on top of the 1% cut announced in the Autumn Statement.
The Class 1 employee's NI contributions main rate will also be cut by 2% from 10% to 8% from 6th April.
The VAT registration threshold will rise from £85,000 to £90,000 from 1st April 2024.
The VAT de-registration threshold is also being increased, to £88,000, from 1st April 2024. This means that if Vatable sales fall below that level, your clients can de-register. This threshold is currently set at £83,000.
The Furnished Holiday Lets (FHL) regime, which offered certain tax advantages to people who let out property as a holiday home rather than as a long-term let, is to be abolished in April 2025.
This means that short-term and long-term lets will be treated the same for tax purposes.
The higher rate of Capital Gains Tax on residential properties will be cut from 28% to 24% from 6th April 2024. The lower rate will remain at 18%.
A new UK ISA will be launched to offer UK investment opportunities for savers. The UK ISA will have a tax-free allowance of £5,000, in addition to the existing ISA allowance. This increases the tax-free investment allowance from £20,000 to £25,000.
Welcome news for most parents: the threshold for HICBC will go up from £50,000 to £60,000 from 6th April 2024. The taper range - the level above which child benefit must be fully repaid - will increase from £60,000 to £80,000.
The above list a brief summary and by no means exhaustive, if you would like bespoke advice to your personal circumstances get in touch today and book a discovery call with Andrew on 07419733270.