Furthermore, the earnings threshold at which child benefit will be removed completely will rise from £60,000 to £80,000. This will be particularly good news for households with children that have seen their salaries rise above the threshold to keep in line with inflation. The chancellor has announced that the £50,000 threshold at which claimants begin to lose their child benefit will rise to £60,000. Changes to child benefit will come into effect The fuel duty freeze will save the average driver £50 over the course of the next year. This decision has cost the Treasury about £5 billion. In a move that will relieve motorists, Hunt has frozen fuel duty yet again, until March 2025. This rate has been frozen since 2011, and this freeze was last extended by a year in March 2023. It’s currently charged at a rate of 52.95 pence per litre of petrol or diesel. Fuel duty freeze extendedĮvery time you pay at a petrol or diesel pump, fuel duty is levied on your purchase. Plus, find out how much your take-home pay will increase by using our tax calculator. The rate remains at 2% on profits over £50,270.įind out more about national insurance, including the latest cuts. Furthermore, a decrease in class 4 national insurance from 9% to 6% on all profits made between £12,570 and £50,270 will save them approximately £1,050 annually. There are still national insurance changes set to take effect that were announced in November from April, around two million self-employed people will benefit from class 2 national insurance being scrapped, which will save them £192 a year. The latest cut to national insurance will be worth an average of £450 a year. This represents annual savings worth a total of £900 for the average worker earning £35,400, according to the Treasury. This means that since 2023, the national insurance rate will have fallen from 12% to 8%. If you think you’re having déjà vu, you’re not wrong the chancellor made the same cut to national insurance as part of his autumn statement in November 2023, which began to take effect in January. This means that 27 million British workers will be paying just 8% of their earnings towards national insurance, rather than the current rate of 10%. Read more: National insurance cut 2024: The 2p tax change explained National insurance cut for the second time in a yearįrom April 6, the rate of national insurance will be cut by two percentage points. A new “British ISA” will be launched, boosting your total ISA allowance by £5,000.A duty on vapes will be introduced from October 2026, while tobacco duty will also rise simultaneously.Landlords that rent out second homes to tourists will no longer benefit from tax breaks.Changes to child benefit will come into effect. National insurance cut for the second time in a year.Here, we break down all of the major changes unveiled as part of the 2024 spring budget that will affect your finances. Rumoured changes to income tax were not part of the chancellor’s plans on this occasion.Ī round of other changes were also announced, including a freeze in fuel duty, a tax on vapes, plus changes to ISAs, child benefit, holiday lets and more. In the spring budget delivered to parliament by chancellor Jeremy Hunt earlier today, he revealed several key policies focused on growing the economy as much as possible, after it was confirmed that the country entered recession at the end of 2023.Ī second round of cuts to national insurance, reported in The Times yesterday, were confirmed by the chancellor this afternoon.
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