Understanding the Spring Budget 2024: A Guide for Our Clients

Exciting changes for everyone

The UK's Spring Budget 2024 brings some fantastic news for individuals and small businesses, making it easier for you to keep more money in your pocket and help your business thrive. Let's break down what this means in simple terms.

For individuals: more money in your pocket

National Insurance Contributions (NICs) are being cut. Whether you're employed or self-employed, you'll see less taken out of your earnings for NICs.

• An employed person earning £30,000 annually would see their NICs reduced. Previously they might have paid around £2,100 in Class 1 NICs, but with a 2p cut this would reduce to around £1,750.
• A self-employed individual with £30,000 in profits benefits from a reduction in Class 4 NICs from 9% to 6%, decreasing their NIC payment and enhancing their net earnings.

For small businesses: growing made easier

• Tax reliefs — new tax breaks designed to reduce your costs and help your business grow, including changes to business rates and incentives for investment in technology and innovation.
• VAT threshold increase — the VAT registration threshold is going up to £90,000. If your business makes less than this, you won't have to register for VAT, saving you time and money.

How Rosevale Accountants can help

Navigating these changes can be tricky, but you don't have to do it alone. We'll guide you on how to make the most of the new tax reliefs and NIC cuts, and help you understand what the VAT threshold increase means for your business.