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): Big news! The government is cutting NICs. What does this mean for you? More take-home pay! Whether you're employed or self-employed, you'll see less taken out of your earnings for NICs.

• Example:

• An employed person earning £30,000 annually would see their NICs reduced, increasing their net income. Previously, they might have paid around £2,100 in NICs (Class 1), but with a 2p cut, this would reduce to around £1,750, leaving them with more in their pocket.

• A self-employed individual with £30,000 in profits would benefit 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: Running a business is getting a bit easier with new tax breaks. These are designed to reduce your costs and help your business grow. These reliefs include changes to business rates, making it cheaper for small businesses to operate physical premises. Additionally, there are incentives for investment in technology and innovation, allowing small businesses to deduct a higher percentage of their investment costs from their taxable profits.

• VAT Threshold Increase: Good news for small business owners! The VAT registration threshold is going up to £90,000. This means 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. At Rosevale Accountants, we're on hand to help you:

• Maximize Your Savings: We'll guide you on how to make the most of these new tax reliefs and NIC cuts.

• Plan for Growth: Our experts will help you understand what the VAT threshold increase means for your business and plan for a prosperous future.

Join Us

Ready to make the most of the Spring Budget 2024? Let's talk about how these changes affect you and how we can help. Book a discovery call with us at Rosevale Accountants today, and let's turn these opportunities into your success.