Spring Budget 2024 Guide for Businesses

As we enter a new fiscal year, businesses across the UK are poised at the edge of change.

The Chancellor of the Exchequer presented his Spring Budget 2024 to Parliament on Wednesday, 6th March 2024. This new budget is heralding a wave of financial adjustments, and this guide is designed to help you navigate these changes. Our precise, actionable insights are catered to businesses that want to thrive in the evolving economic landscape. Understanding these shifts — from tax tweaks to investment incentives — is beneficial and essential for your strategic planning.

Here’s what our Spring Budget 2024 guide covers . . .

Your business can expect stability in the financial landscape.

The Spring Budget 2024 maintains a steady income tax course, and no substantial changes have been announced. Such stability is crucial in times of economic flux. The UK Government have provided a predictable landscape for both individuals and businesses. This tax environment is incredibly consistent for companies. Thanks to this, you can proceed with financial forecasting and planning with a degree of certainty.

Expect a lightened load for workers and businesses alike.

A pivotal shift in National Insurance contributions marks a significant change in the Spring Budget 2024. For employees, the rate drops from 10% to 8%; for the self-employed, class 4 contributions decrease from 8% to 6%. However, the employer's contribution rate holds steady at 13.8%. The realignment aims to ease workers' financial burdens. It also encourages entrepreneurship to inject more life into the economy.

Fairer benefits for modern families.

The High Income Child Benefit Charge has been restructured. It now has a more inclusive threshold based on household income, set at £60,000. This change means households with two earners making over £30,000 each £40,000 each are no longer eligible. However, single-earner households making up to £60,000 now qualify. This reform aims to ensure a fairer distribution of child benefits. It also aligns more closely with the economic realities families face.

There's new breathing room for small businesses.

The increase in the VAT registration threshold from £85,000 is a significant boon for small businesses. Raising the threshold will allow more small companies to avoid complex VAT registration and reporting — at least in their early growth. This change will help small businesses grow and reduce the paperwork burden on new companies.

It does adjust the scales for property owners.

Property owners face a mixed bag of changes in the Spring Budget 2024. The higher property capital gains tax rate is reduced from 28% to 24%, offering some relief to property investors. However, the government abolished the multiple dwellings relief and furnished holiday lettings regime for stamp duty. This means a tightening of tax benefits for property investments. These adjustments reflect an effort to balance the housing market. They aim to encourage fair and sustainable investment.

Spring Budget 2024 Guide for Businesses

Spring Budget 2024 FAQs

Have a question about the 2024 spring budget? You may find your answer below.

1. How does the Spring Budget 2024 affect small businesses?

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The Spring Budget 2024 introduces several measures to help small businesses. One point, in particular, includes raising the VAT registration threshold to £90,000. This gives small businesses more time before they need to register for VAT. It could ease financial pressure and administrative burdens. At Birkett & Co., we specialise in helping small businesses navigate these changes. Get in touch for personalised advice and leverage these updates.

2. What are the changes to National Insurance Contributions, and how will they impact me?

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National Insurance contributions have been reduced. Employee rates dropped from 10% to 8%, and self-employed class 4 rates from 8% to 6%. The employer's rate remains at 13.8%. This cut can raise take-home pay for employees and self-employed people. It will boost disposable income. Our team at Birkett & Co. is here to help you understand these changes and adjust your financial planning accordingly.

3. Can you explain the new High Income Child Benefit Charge thresholds?

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The High Income Child Benefit Charge threshold has been raised to a household income of £60,000, changing the eligibility dynamic. Depending on their income structure, more families may now qualify for child benefits. Birkett & Co. provides tailored advice to help families' financial situations in light of these changes.

4. What does the increase in the VAT registration threshold mean for my business?

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Raising the VAT registration threshold to £90,000 allows more businesses to operate without needing to charge VAT. This reduces paperwork and may improve cash flow. At Birkett & Co., we offer strategic planning services to help businesses adjust to this new threshold. Our team can ensure that they make the most of the change to support growth and financial health.

5. How will the changes in property tax, including Capital Gains Tax and Stamp Duty, affect my property investments?

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The Spring Budget 2024 introduces adjustments to property taxes, including a reduction in the higher rate of Capital Gains Tax from 28% to 24%. However, scrapping relief for multiple dwellings and the furnished holiday lettings regime could impact property investments. Birkett & Co. stands out with our expertise in property taxation. We provide investors with cutting-edge advice to navigate these changes efficiently and effectively.

How can we help?

I need help with my tax

It's no secret that individuals and businesses want to pay the least amount of tax possible. This is what fuels all our taxation services and is why we've built a reputation for minimising our client's tax liabilities. It's our savvy and skilled advice that keeps both our clients and the authorities happy.

I’m running a business

Running a business requires excessive plate spinning – far more than most people bargain for. As a business leader, we know you’d rather be getting on with the stuff you love doing: thinking creatively, nurturing your ideas and loving every minute of it – which is where we come in.

I want to start a business

Helping business ideas take off is incredibly rewarding, not least because of the creativity of our clients’ start-ups. We’re proud to support a rich variety of innovative and entrepreneurial ventures. We work one-on-one with clients to ensure their businesses don’t just survive but thrive.

I want to grow my business

There’s no doubt that scaling your business is tough. It requires tactical decision-making and a watertight strategy with one goal in mind: growth, and lots of it. Our proactive approach has seen many of our clients’ businesses thrive beyond expectations.

Get in Touch for Assistance with The Spring Budget 2024

Here at Birkett & Co. Ltd, your success is our business.

Want to make your money work harder, faster and smarter? So do we. Here on the South Coast, our savvy, forward-thinking team of advisors are on-hand to support you with any financial questions. Whether you’re an individual or a business, you can expect candid communication and industry-leading advice.

We’ll ensure your finances are not only on your side, but you have the power to make your money work harder and go further than you thought possible.

Facilitating your business’ growth one-on-one is what drives our team of experienced professionals. We’re incredibly proud to be so much more than an accountancy firm. Since our formation in 1979, our unique, proactive approach has helped thousands of businesses prosper. Our team welcomes emails or calls from new and existing clients and endeavours to respond within two working hours.

Contact Birkett & Co Ltd to help you with the Spring Budget 2024.

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  • A holistic approach that's best for the business and you
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