31/10/2024
Following yesterday's autumn budget announcement, here are some key highlights: 🧰📢
•Income Tax and NIC thresholds will remain frozen until the end of 2027-28, when they will begin to rise in line with inflation⏸
•Employers National Insurance is set to increase from April rising from 13.8% to 15%. Employers will pay this on employees salaries above £5,000 instead of the current £9,100⬆️
•Employment Allowance to increase from £5,000 to £10,500⬆️
•National Minimum Wage to increase from April for over 21’s from £11.44 to £12.21 per hour and £8.60 to £10 for 18-20 year-olds⬆️
•Capital Gains Tax rates have changed with immediate effect with the lower rate increasing from 10% to 18% and the higher rate rising from 20% to 24%, matching existing rates for property which stay the same. Rates on chargeable gains from selling additional property remain unchanged at 18% and 24% respectively⬆️
•Stamp Duty on the purchases of second homes has risen from 3% to 5% from today⬆️
•Inheritance Tax thresholds frozen at £325k until 2030. From April 2027, inherited pensions are subject to tax⏸
•Corporation Tax see’s no changes and will stay at 25% for businesses with taxable profits over £250k until the next election⏸
•HMRC will have the power to hike up interest they charge on late payments of tax. Currently set at 7.5% which is 2.5% over the bank rate, this is set to rise to 4% over the base rate from April 2025⬆️
If you are worried about how any of the announcements may affect you then get in touch with us to see how we can help📞
