The recent Spring Statement 2024 unveiled a series of financial adjustments designed to benefit both individuals and businesses across the UK.
Here’s a breakdown of the key changes and how they might impact you or your payroll team.
National Insurance Adjustments
Starting 6th April 2024, employees will see a 2p cut in the main rate of National Insurance, dropping from 10% to 8%. This reduction translates to an annual saving of approximately £470 for the average worker. Similarly, self-employed individuals will experience a decrease in their National Insurance contributions from 8% to 6%, leading to an annual saving of £650 for those with an average income of £28,000.
VAT Registration Threshold Increase
Businesses take note: from 1st April 2024, the threshold for VAT registration will rise from £85,000 to £90,000, easing the administrative burden on small businesses and encouraging growth.
Boost for Business Taxes
The Chancellor announced the extension of full expensing to leased assets, though the implementation date is yet to be determined. Additionally, the Recovery Loan Scheme has received a £200 million boost, now rebranded as the Growth Guarantee Scheme, aimed at assisting up to 11,000 small businesses.
Introducing the British ISA
A new British ISA will be available, allowing an additional £5,000 of annual tax-free investment in UK stocks, offering savers a lucrative alternative to traditional savings accounts.
Capital Gains Tax Reduction
Investors and property owners will welcome the reduction of the higher Capital Gains Tax rate on residential property from 28% to 24%, incentivizing property sales.
Child Benefit Revisions
From April 2026, child benefit eligibility will be assessed based on household income rather than individual earnings, benefiting thousands of families. Additionally, from 6th April 2025, the threshold for the higher income child benefit charge will be raised from £50,000 to £60,000.
Fuel Duty and Furnished Holiday Lettings
The government will extend the fuel duty freeze and maintain the 5p cut for another year. In a significant move for the property rental sector, the Furnished Holiday Lettings tax regime will be abolished from 6th April 2025.
Stamp Duty and Levelling Up Fund
The multiple dwellings relief for Stamp Duty will end on 1st June 2024. Meanwhile, the Levelling Up Fund will see an extension of investment zones and a deepened devolution deal with the North East Mayoral Combined Authority.
How Stones Accountancy Ltd Can Help
As these changes unfold, it’s crucial to understand their impact on your finances and business operations. Whether you’re an individual navigating the new National Insurance rates or a business owner adapting to the VAT threshold increase, Stones Accountancy Ltd is here to support you.
Our expertise in payroll and self-assessment can help ensure that you’re maximizing your financial efficiency in light of these updates.
Payroll Assistance
In light of the Spring Statement 2024, with significant changes to National Insurance contributions and other financial updates, ensuring your business’s payroll systems are adapted and compliant is more critical than ever. Stones Accountancy Ltd offers bespoke payroll services designed to alleviate the complexities of payroll management, allowing you to focus on what you do best—running your business.
Why Choose Our Payroll Services?
- Expertise: Our team stays ahead of legislative changes, ensuring your payroll is compliant with the latest tax laws and regulations, including the recent National Insurance adjustments.
- Efficiency: We streamline your payroll processes, from employee payments to HMRC submissions, saving you time and reducing the potential for errors.
- Customization: Our services are tailored to meet the unique needs of your business, whether you’re a small startup or a growing enterprise.
- Support: Stones Accountancy provides ongoing support and advice, helping you navigate the complexities of payroll management with ease.
Your Partner in Growth
As your business evolves, so do your payroll needs. Stones Accountancy Ltd is committed to providing scalable payroll solutions that grow with your business. From handling employee inquiries to generating comprehensive reports, we offer a full suite of services to ensure your payroll operations run smoothly.
Take the Next Step
Don’t let payroll complexities slow down your business. Partner with Stones Accountancy Ltd and benefit from our expertise in payroll management. Visit our Payroll Services page to learn more about how we can support your business in adapting to the changes brought by the Spring Statement 2024 and beyond.