Chancellor Jeremy Hunt has today released his financial statement for the Spring Budget – so we’re highlighting the key updates that may impact your business.
An update on the Economy following the Spring Budget Announcement
It has been predicted that the UK economy will grow by 0.8% this year and 1.9% next year, so brighter days are on the horizon. In line with this, the UK’s inflation rate is forecast to fall below 2% by the end of June 2024.
Additions to Full Expensing
Leased assets have a commitment from the government to be included in the ‘Full Expensing’ scheme ‘once affordable’. This shows positive recognition from the government that leasing is the funding route of choice for many businesses.
Further reductions on National Insurance in the Spring Budget
January saw the first cut in Class 1 National Insurance. Now this has been reduced by a further 2p for every £1. For example, for employees paid between £12,571 to £50,270 a year, the NI rate will drop from 10% to 8% in April. For the self-employed, Class 4 NI contributions on all earnings between £12,570 and £50,270 were already due to be cut from a rate of 9% to 8% in April. Mr Hunt said that would now go down to 6%.
Supporting green energy
There has been a further £120M government investment in support of the Green Industries Growth Accelerator (Giga) fund. This will go a long way towards schemes such as lowering carbon emissions and renewable energy projects for a cleaner Britain.
Spring Budget announces Stamp Duty Tax break coming to an end
It’s been announced that the stamp duty tax break that was placed on multiple property purchases will come to an end as of June 2024. If investing in property is in your pipeline for this year, it would be financially beneficial to move your plans forward before the end of the tax break.
VAT Threshold risen for the Spring Budget
The threshold at which small businesses must register to pay VAT will be raised from £85,000 to £90,000 in April. The aim is to reduce pressure on small businesses in the UK, allowing for more productive growth.
Child Benefit to be paid to more families
Full child benefits will now be paid to households where the highest-earning parent earns up to £60,000 – a rise of £10,000 on the current limit. Partial child benefit will also be accessible to those with a highest earner of up to £80,000. Overall, the government estimates 485,000 families will gain an average of £1,260 in child benefit in 2024-25 as a result of this change.
So, what happens now the Spring Budget Announcement has happened?
Our team at Moorgate Finance live and breathe finance. We are here to help with anything you may need further clarification on and are confident we can help your fund your future aspirations. Call us on 01908 92 62 62 to discuss your options, or use the link here to schedule a call back with one of our specialists.