Autumn Budget 2024

Here's a quick overview of the Autumn 2024 Budget.

Taxes

• National Insurance:

  • Employers' contributions will increase by 1.2% to 15% from April 2025.

  • The threshold at which businesses start paying National Insurance on workers' earnings will be lowered from £9,100 to £5,000. This means sole directors taking a salary will start paying employers national insurance on their salary after £5,000. We will be digesting and communicating the optimum salary in due course. Changes do not come into effect until April 2025.

  • Employees' National Insurance contributions will not change.

• Income Tax: No changes to income tax rates.

• Inheritance Tax:

  • The threshold will remain frozen at £325,000 until 2030.

  • Inherited pensions will be subject to inheritance tax from April 2027.

  • Agricultural and Business Property Relief will be reformed, with a 50% relief on assets over £1 million.

• Capital Gains Tax:

  • Rates will increase to 18% for the lower rate and 24% for the higher rate.

  • Rates on residential property remain unchanged.

• Stamp Duty: A 2% increase on the surcharge for second homes, bringing it to 5%, effective immediately.

• VAT: No changes to VAT rates.

• Corporation tax: No changes to Corporation tax rates.

Electric Vehicles

• Existing incentives for electric vehicles in company car tax will continue from 2028.

• The difference in Vehicle Excise Duty between fully electric and other vehicles will increase from April 2025.

Business

• The Employment Allowance will increase to £10,500, this will benefit smalls businesses with more than one employee eligible for the allowance.