Ep 124 -Budget and End Of Tax Year

Hey everyone, it’s Rebecca here, and today I’m bringing you a solo session where we’re delving into the nitty-gritty of the budget and the approaching end of the tax year. Now, I know it might not be the most thrilling topic, but it’s one that’s incredibly important, especially in the realm of financial planning.

Let’s start with a quick rundown of some of the main changes that emerged from the Chancellor’s budget. Class one national insurance is set to drop from 10% to 8% come April 6th, marking the second cut in just six months. While it’s unclear how much of an impact this will have on our pockets, any reduction in the right areas is always a bonus, don’t you agree?

Self-employed individuals will also benefit from a reduction in the main rate of class four national insurance, dropping from eight to 6%. This comes as a relief for many who have struggled without much support during the pandemic.

Now, onto high income child benefits. The threshold is increasing from £60,000 to £80,000, providing a welcome bonus for those falling within that income bracket.

Residential property disposals will see a cut in the higher rate of capital gains tax from 28% to 24%, potentially impacting those selling second homes.

Exciting news for savers! A new UK Individual Savings Account (ISA) will be introduced, offering an additional £5,000 allowance on top of the current £20,000 limit.

As for the VAT threshold, it’s increasing from £90,000 to £98,000 from April 1st, 2024. While it’s a step in the right direction, many believe it should be raised even further.

The non-domicile rules will be replaced with a new regime based on residency starting April 2025. This change aims to ensure that individuals residing in the country contribute their fair share of taxes.

On a personal note, I’m taking a well-deserved retreat soon, but before I go, I’ll be working hard to ensure my clients make the most of their carry forward allowances for pension contributions.

Now, I’d love to hear your thoughts on these budget changes. Do you think more should have been done? Reach out to me on social media or via email, I’m always eager to hear from you.

Take care, and I’ll catch up with you all soon. Bye for now!

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