The main tax change in today’s budget is the plan to increase Employers NI by 1.2% to 15% from April 2025. Offsetting this for small employers will be an increase in the Employment Allowance from £5,000 to £10,500 pa., this will mean the smallest employers will continue to pay little or no Employer NI. However the Employment Allowance is not available to companies with just a single director employee who will typically see an increase in Employers NI payable from £203 to £835.
In other changes the rates of Capital Gains Tax are being increased with the basic rate increasing from 10% to 18% and the higher rate from 18% to 24%.
The Inheritance Tax allowance will remain frozen at £325,000 for a further 2 years to 2030. Also unspent pension ‘pots’ will be brought into IHT with effect from 2027.
If you have any questions about how the Budget will affect you please get in touch.
Budget 2024
Published On - 30 October 2024