With the first budget now delivered by the new Labour Government, let’s take a look at the key points that have been raised;
The freeze on income tax and National Insurance thresholds will end in 2028, preventing people from being pulled into higher tax bands as their wages rise.
Businesses will have to pay National Insurance on employee’s earnings above £5,000 from April 2025, down from £9,100 currently. The rate is also increasing from 13.8% to 15%.
Employment allowance which allows companies to reduce their National Insurance liability to increase from £5,000 to £10,000.
The main rate of corporation tax, paid by businesses on taxable profits over £250,000 to stay at 25% until the next election.
The legal national minimum wage for over 21’s will rise from £11.44 to £12.21 per hour from April 2025.
The rate for 18-20 year olds to go up from £8.60 to £10 per hour. This is part of a long term plan to move towards a single adult rate.
Capital gains tax paid on profits from selling shares to increase from 20% up to 24%. The rates on additional property sales remain the same.
The Government will maintain corporation tax at the main rate of 25% and the small profits rate at 19% for the financial year beginning 1 April 2026.
As announced at the July Statement 2024, the government will introduce legislation to remove the specific tax treatment and separate reporting requirements for Furnished Holiday Lettings (FHL).
Income and gains from a FHL will form part of the person’s UK or overseas property business. These changes will take effect on or after 6 April 2025 for Income Tax and Capital Gains Tax and from 1 April 2025 for Corporation Tax and for Corporation Tax on chargeable gains.
This is just a summary of the main points of the Autumn Budget 2024 that we thought would be relevant to you. For further information on the Autumn Budget 2024 head to the gov.uk website. If you need help to see how the Autumn Budget 2024 will affect you, give us a call today.