Autumn Budget 2024

Budget, HR, Payroll, Tax,

With a new Government, a new Chancellor, and the first Labour Budget in 14 years, there was always going to be a lot of attention on this Budget.

Add to that the seemingly unending speculation around the size of the ‘black hole’ that must be filled, the impact on that of pay rises granted to public sector workers since the Government’s election win, as well as debate around the definition of ‘working people’ and there has been a media frenzy around the subject for weeks.

Confidence has been battered, as many business decisions have stalled until the detail was available.

The speculation included:

  • National Insurance to be imposed on Employers’ pension contributions.
  • An increase in the rate of Employers’ National Insurance contributions.
  • The abolition of the Employers’ Allowance.
  • Increases in the rates of Capital Gains Tax and Inheritance Tax.
  • A reduction in the tax-free amount that can be taken from your pension.
  • A reduction in the limit for pensions contributions from the current £60,000 annual allowance.
  • An extension of the freezing of Income Tax bands.
  • Increases in fuel duty.

The options and discussion points were many and varied!

Today though, we were finally able to hear the detail.

What was actually announced?

There was a lot in this Budget, including some unexpected content. The biggest announcements were:

  • The final amount Rachel Reeves wanted to raise was an eye-watering £40billion.
  • Employer National Insurance contributions will increase to 15% from April 2025.
  • The secondary threshold for National Insurance will decrease from £9,100 to £5,000.
  • The Employment Allowance will increase from £5,000 per year to £10,500 per year.
  • Capital Gains Tax rates will increase from 10% and 20% to 18% and 24% for the low and higher rates respectively.
  • Business Asset Disposal Relief will remain unchanged until 2025/26, when it will increase to 14%, rising again in 2026/27 to 18%.
  • Double cab pick-ups will be treated as cars from April 2025.
  • Unspent pensions will become subject to Inheritance Tax in 2027.
  • Income Tax bands will increase in line with inflation from 2028.
  • The main rate of Corporation Tax will remain at 25% for this Parliament.

The Summary…

To access our summary, which gives more details on all of the above and more besides, click on the button below:

If you’d like to read the Chancellor’s speech in full, you can do that here.

There was a lot of content in yesterday’s speech, and there will definitely be more detail to come. We’ll work through all of that, and the inevitable small print, and will post updates with this extra information as appropriate.

As always, if you have any specific questions from any of the announcements so far or the impact they may have on your personal or business affairs, please get in touch.

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