The Spring Budget 2024 has unveiled a range of measures supporting and stimulating growth amidst the evolving economic landscape. Here's a breakdown of the key highlights and implications for small business owners:

Tax

VAT threshold – The taxable turnover threshold has been increased from £85,000 to £90,000.

National Insurance – Employees - This has been reduced from 10% to 8, saving 2p in the pound.

National Insurance – Self-Employed – National Insurance Class 4 has been reduced from 9% to 6%.

Dividend Rates - The dividend tax rates have stayed the same however the tax-free dividend allowance has decreased from £1,000 in 2023/ 24 to £500 in 2024/ 25.

Capital Gains Tax On UK Residential Property – the higher rate of Capital Gains Tax for residential property gains will reduce from 28% to 24%. The lower rate stays at 18% for any gains that fall within an individual’s basic rate.

Fuel Duty – The 5p cut to fuel duty in 2022 has been extended.

Alcohol Duty – The freeze on alcohol duty has been extended until 1st February, 2025.

Vaping Products Duty – This new tax on vaping liquids will see duty added to liquids depending on their nicotine content per 10ml of liquid.

Business Rates Relief

Eligible retail, hospitality and leisure properties will continue to benefit from business rate relief.

Child Benefit

Anyone earning under £60,000 won’t have to pay anything back. Once net income of £60,000 is earned, there will be a charge of 1% of the full Child Benefit award for each £200 of adjusted income between £60,000 and £80,000. The charge on tax payers with income above £80,000 will equal the full amount of Child Benefit paid.

Pension Allowances

The annual allowance remains the same, £60,000.

Recovery Loan Scheme

Set up to support businesses during the Covid-19 pandemic, this scheme will be re named the Growth Guarantee Scheme, in which the Government guarantees 70 per cent of loans of up to £2million.