Soke Accounting: Spring Budget 2024 Update: Good News for Businesses and Families!
The recent Spring Budget delivered positive news for both businesses and families! Here at Soke Accounting, we want to ensure you’re up-to-speed on the key changes that might affect you.
Reduced National Insurance Contributions (NICs) for Employees and the Self-Employed:
- Great news for employers! Starting April 6th, 2024, the main rate of Class 1 NICs for employees is reduced from 10% to 8%. This means more money in your employees’ pockets!
- Self-employed individuals also benefit from a further 2% reduction in Class 4 NICs, bringing the rate down to 6% from April 6th, 2024.
Important Action for Employers:
We recommend collaborating with your payroll software provider and IT partners (if applicable) as soon as possible to implement these changes by the April 6th deadline. HMRC’s Basic PAYE Tools will be updated to reflect the new rates.
Changes to the High Income Child Benefit Charge:
- The threshold for the High Income Child Benefit Charge is increasing to £60,000, effective April 6th, 2024. This means more families will be exempt from the charge.
- For those earning between £60,000 and £80,000, a tapered system applies, minimizing the impact of the charge.
Thinking about Claiming Child Benefit?
If you or your employees have previously opted out of Child Benefit, this might be a good time to reconsider! The charge is tapered, so claiming Child Benefit can still be financially beneficial for those earning between £60,000 and £80,000.
Taking Action on Child Benefit:
- Claims can be easily submitted via the HMRC app or online, with automatic backdating for up to 3 months.
- New guidance on the High Income Child Benefit Charge is available from HMRC. We recommend sharing this with your employees.
Stay Informed:
For more details on these changes and other budget measures, visit GOV.UK:
- National Insurance Contributions (NICs): https://www.gov.uk/national-insurance
- High Income Child Benefit Charge: https://www.gov.uk/child-benefit-tax-charge
- Spring Budget 2024 Overview: https://www.gov.uk/government/collections/spring-budget-2023-tax-related-documents
Soke Accounting is here to help you navigate these changes. If you have any questions, please don’t hesitate to contact us!
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