In yesterday’s spring budget, the chancellor Jeremy Hunt announced an employee national insurance (NI) tax cut from 10% to 8% from April, along with a 2p reduction in NICs (national insurance contributions) for the self-employed.

When combined with the NI and NICs cuts announced in the autumn 2023 statement, the new reductions will see the average employed worker save £900 this year compared to the previous year, while the average self-employed person will save £650.

In addition, the VAT registration threshold will be increased from £85,000 to £90,000, which is less than the £100,000 called for by the Federation of Small Businesses in the March issue of Images [imagesmag.uk/Mar24-FSB].

The Growth Guarantee Fun, which helps SMEs access finance to invest and grow, is receiving a £200 million extension, and draft legislation will be published “within weeks” to extend full expensing, the scheme which allows businesses to claim 100% capital allowances on qualifying plant and machinery investments, to leased assets “when affordable to do so, strengthening one of the most attractive capital allowance regimes of any major country”.

Other measures include freezing the 5p cut to fuel duty until March 2025, while the threshold for High Income Child Benefit Charge has been increased to £60,000, and the rate at which child benefit is repaid will be halved for those earning between £60,000 and £80,000.

The full budget can be read here: imagesmag.uk/Spring-Budget-24

www.gov.uk