Following the Spring Budget announcement by the Chancellor at lunchtime today, the headlines are as follows:
National Insurance
- In the Autumn budget Employee National Insurance was cut by 2p, there will be a further 2p cut to the National Insurance from April. This would mean the main rate would be reduced from 10% to 8%, saving the average worker around £450 a year
- Self-employed National Insurance will be reduced from 8% to 6% meaning an average saving of £350 a year
VAT Registration Threshold
- The VAT registration threshold will be raised from £85k to £90k from April
Savings
- A new ‘British Isa’ which will allow an additional £5k annual investment (for investments in UK equity) on top of the normal advantages of normal ISAs will be launched
- A new British Savings Bond with a guaranteed fixed 3 year rate will be introduced
Other
- Alcohol duty was set to rise by 3% from August but this will now be frozen until February 2025
- Fuel duty frozen for 2024/25 – There will be an extension on the temporary 5p cut on fuel for a further 12 months, and they have cancelled the inflation increase
