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SPRING BUDGET ANNOUNCED! WHAT DOES IT MEAN FOR ME?


At 12.30 The Chancellor Jeremy Hunt, delivered his spring budget with one eye on a looming general election later this year. The Conservatives have said they want to reduce the tax burden on British workers and improve economic growth.


Nothing contained came as a surprise, here is a Summary of things that will benefit you.


  1. National Insurance Reduction: The headline rate of national insurance for employees has been reduced by an additional two percentage points, from 10 per cent to 8 per cent. This measure, combined with the previous two percentage point cut announced in November, will save the average worker £900. Additionally, the rate for the self-employed will be lowered from 8 per cent to 6 per cent.

  2. Alcohol Duty: The freeze on alcohol duty has been extended for a further six months until February 2025. This move is expected to benefit 38,000 pubs across the UK, providing relief to the hospitality sector.

  3. Fuel Duty: Fuel duty has been frozen for the 14th consecutive year. Additionally, the chancellor has kept in place a 5p cut to petrol taxes that was introduced in 2022 to alleviate the cost of living crisis. This measure is expected to save the average car driver £50 next year.

  4. Child Benefit Charge Threshold Increase: The threshold for parents paying the high-income child benefit charge has been raised from £50,000 to £60,000. This adjustment means that households where one parent earns more than £60,000 will have to pay back some of the benefit. The change is expected to benefit almost half a million families, with an average increase of nearly £1,300.

  5. VAT Threshold for Small Businesses: The VAT threshold for small businesses has been raised from £85,000 to £90,000, effective from April 1. This adjustment will exempt approximately 28,000 small businesses from paying VAT altogether. Additionally, a government-backed loan scheme aimed at supporting access to finance for British businesses will receive a £200 million extension and be renamed the “Growth Guarantee Fund.”

  6. Isa Reform: A new British Individual Savings Account (Isa) will be introduced, allowing an additional £5,000 annual tax-free savings allowance for investments in UK equities, on top of the existing Isa allowances. This move aims to encourage investment in the UK economy.


You can read everything outlined in today's budget via this link Spring Budget 2024 - GOV.UK (www.gov.uk)

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