Anyone with an interest in business finance was keeping their ears well to the ground on Wednesday 6th March when Jeremy Hunt stepped up to the despatch box to deliver the 2024 budget, almost certainly the last one prior to a general election. If you’re responsible for bookkeeping, whether as a sole trader or a larger company, you will undoubtedly have zoned in on the chancellor’s heavily pre-publicised cut to the national insurance rate, but there are also other points of which you need to be aware. We’ve put together a quick summary to help.
National Insurance reduction
From 6 April, the starting rate for the payroll tax national insurance will change from 10% to 8% for around 27 million workers. The government says this will mean an increase of around £900 a year for an employee on an average salary of £35,000, when combined with the previous 2% cut. In addition, national insurance payments for self-employed workers will drop from 8% to 6%, and they will no longer pay a separate category of national insurance called Class 2 contributions.
VAT threshold raised
From 1 April, the twelve-month taxable turnover threshold which determines whether a small business should be registered for VAT increases from £85,000 to £90,000, and the threshold for applying for deregistration will increase from £83,000 to £86,000. For Northern Ireland both thresholds will increase from £85,000 to £90,000.
Covid loan scheme extended
The loan scheme set up by the government to help small businesses during the pandemic is to be extended for a further two years. It will be renamed the Growth Guarantee Scheme, in which the government guarantees 70% of loans up to £2 million.
Artistic tax relief
Good news for hard-pressed performers – during the pandemic, the government temporarily increased theatre tax relief rates, and this was due to end next year. However, these tax reliefs have now been made permanent, with 45% relief for touring artists and 40% relief for non-touring artists.
Tax on selling property reduced
The higher rate of tax paid on profits from selling property has been cut to 24%, down from 28%.
Change to tax breaks on holiday lets
If you are a landlord renting out furnished holiday lets, the tax relief on these has been scrapped, as part of a government drive to ensure there are enough properties available for long term rental by local people living in popular UK holiday destinations.
Stamp duty change
Multiple Dwellings Relief, a relief from Stamp Duty Land Tax which applies to the purchase of two or more dwellings in England or Northern Ireland, will be abolished for transactions which complete, or substantially perform, on or after 1 June 2024.
As bookkeepers to every possible size of business from single traders upwards, we keep a weather eye on all changes which affect them, so our clients know they’re getting the most up-to-date advice. This kind of expertise can make a big difference to balancing your books and making a profit, so why not contact us on 01892 559480 or check out the rest of our website to see how we could help your business.
