March 24, 2024
In a snapshot, the recent and previous budgets mean that from April 2024:
National Insurance Contributions ("NIC")
- The headline rate of NIC will fall from 10% to 8% for PAYE roles and from 9% to 6% for self-employed roles. This rate of NIC applies to earnings between £12,570 and £50,270.
Child Benefit
- The high-income child benefit charge is changing from 6th April. Families should reconsider claiming child benefit from this date – See separate blog post about this here.
Capital Gains Tax
- The capital gains tax annual exempt amount will reduce from £12,300 per person to £6,000 per person (further reducing to £3,000 from 2024/25).
Company / Dividend Tax
- The tax free dividend allowance is reducing to £500 per year.
Income Tax
- Income tax rates and bands (England & Wales*) will remain as follows:
- £12,570 personal allowance
- 20% tax on the next £37,700 (or 8.75% for dividends)
- 40% tax on income thereafter, up to £125,140 (or 33.75% for dividends)
- 45% tax on income in excess of £125,140 (or 39.35% for dividends)
*Scotland Income Tax rates and bands can be found here
Other Measures
- HMRC have allocated significant funding of £47m to boost their tax collection capabilities – consider tax investigations insurance available through me here. Last year's price for this is held until the end of March '24.
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