Chancellor Jeremy Hunt unveiled the government’s spending plans for the year in the Spring Budget, and here’s a summary of the key announcements impacting small businesses:
Tax Breaks
Reduced National Insurance contributions: Self-employed individuals will benefit from a further 2p reduction, potentially saving them an average of £350 annually.
Increased VAT Registration Threshold
The threshold has risen from £85,000 to £90,000, allowing more small businesses to delay VAT registration and its associated complexities.
Cost-Saving Measures
Extended Fuel Duty Freeze
The current fuel duty rate will remain unchanged for another year, potentially saving car-reliant businesses around £50 annually.
Extended Alcohol Duty Freeze
Hospitality businesses can benefit from a continued freeze on alcohol duty until February 2025, potentially lowering the average pint price by 2p.
Other Announcements
Increased Child Benefit Threshold
The threshold for the High Income Child Benefit Charge has been raised to £60,000, potentially benefiting families with dual incomes.
Planned Shift to Household Income for Childcare Benefits
While not taking effect until 2026, the government announced plans to base childcare benefits on total household income, potentially offering fairer support.
Anticipated Dip in Inflation
The Office for Budget Responsibility predicts inflation to fall below 2% in the coming months, offering some relief for businesses struggling with rising costs.
While some small businesses expressed disappointment, particularly regarding the limited VAT threshold increase, these measures aim to alleviate financial burdens and support business growth. We shall have to wait and see if that’s the case !
It goes without saying that we can help you understand the full impact of these Spring Budget announcements on your business, as well as your personal tax position. We can ensure that you’re taking advantage of all available benefits. Contact Us today for a free consultation!