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.

This revised summary clarifies the changes to National Insurance and groups related items together for better readability.