Spring Budget 2024 – What You Need To Know As A Business Owner

Today was the Spring Budget 2024 and so we wanted to summarise what that means for you as a business owner.

 

Here at 8FP, we specialise in helping business owners achieve financial freedom and we believe that doesn’t just come from a bespoke financial plan but also through empowering and educating our clients when it comes to their finances.

 

So, let’s break down the Spring Budget 2024. Below, we briefly cover the key areas for business owners. 

 

Our director, Rik, has also done a more in-depth video explaining these areas further which you can find at the end. 

 

Here’s what we’re going to cover:

 

• National Insurance

 

• Income Tax

 

• Child Benefit

 

• Capital Gains Tax

 

• Holiday Lets

 

• VAT Thresholds

 

National Insurance

 

Okay, let’s kick things off with National Insurance (NI). The National Insurance rate will be cut from 10% to 8% of pay from April. It’s estimated that this cut would be worth about £450 per year for someone on a £35,000 full-time salary.

 

Income Tax

 

The good news is that the government hasn’t done too much with income tax rates this time around. However, they’ve adjusted the income tax bands slightly. This means that if you’re earning above a certain amount, you might end up paying a bit more tax. Always worth double-checking with your accountant to see how this affects your specific situation.

 

Child Benefit

 

Got little ones running around? Then you’ll want to pay attention to the changes in Child Benefit. The government has decided to increase the amount of Child Benefit this year from £50,000 to £60,000. This means you can earn £60K before any of the benefit starts to get clawed back. Plus, the claw back now spans up to £80K before you get no child benefit.

 

Capital Gains Tax

 

Capital Gains Tax (CGT) = The tax on the profit you make when selling an asset. 

 

The higher rate CGT has been reduced from 28% to 24%.

 

Furnished Holiday Lets

 

You used to get relief for renting out holiday lets, however, that is no longer the case.

 

VAT Thresholds

 

The government has decided to increase the VAT threshold from £85,000 to £90,000 from the start of April. This means that your business can now turnover £90K before you have to register for VAT.

 

That is a very brief summary to keep you in the loop.

 

Our director, Rik, goes into these areas in further detail in his video here.

 

As always, if you have any questions, or are unsure about anything, we’re here.