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Today (30th<\/sup> October 2024), the Chancellor of the Exchequer, Rachel Reeves, presented Labour\u2019s first Budget in 14 years to Parliament. The Autumn Budget 2024 pledges to raise around \u00a340bn <\/strong>for government programmes focused on \u201cnational renewal\u201d and narrowing the growing \u201cblack hole\u201d in public finances. Our latest article highlights the key announcements in the Autumn Budget 2024. <\/strong><\/p>\n Chancellor Rachel Reeves has delivered Labour\u2019s first Budget since 2010 after the party\u2019s return to power in July\u2019s general election. The Office for Budget Responsibility (OBR) predicts the UK economy will grow by 1.1% this year, 2% next year, and 1.8% in 2026. Inflation is predicted to average 2.5% this year and 2.6% next year before falling to 2.3% in 2026.<\/p>\n Please visit the government\u2019s website<\/strong><\/a> to read the full Autumn Budget 2024.<\/p>\n The legal minimum wage for over-21s to rise from \u00a311.44 to \u00a312.21 per hour from April, and the rate for 18 to 20-year-olds to rise from \u00a38.60 to \u00a310 as part of a long-term plan to move towards a \u201csingle adult rate\u201d.<\/p>\n Chancellor Rachel Reeves has vowed to crack down on unpaid taxes to raise \u00a36.5 billion by the end of the forecast period. The Chancellor announced an investment to modernise HMRC\u2019s systems using the very best technology and recruit additional HMRC debt and compliance staff.<\/p>\n The Chancellor also pledged to clamp down on umbrella companies that exploit workers, increase the interest rate on unpaid tax debt to ensure people pay on time and pursue promoters of tax avoidance schemes.<\/p>\n Employers National Insurance is changing from April 2025 as part of a \u00a325 billion tax raid on firms through this levy. Employers will be required to pay National Insurance on workers\u2019 earnings above \u00a35,000\u2014currently \u00a39,100. The rate of Employers National Insurance is also increasing 13.8% to 15%.<\/p>\n The rates of Income Tax and National Insurance paid by employees will remain the same. Income Tax band thresholds will be unfrozen in 2028 to prevent people from being dragged into higher tax bands as their wages rise, and they will rise in line with inflation.<\/p>\n VAT on private school fees will be introduced from January 2025, with legislation soon to remove their business rates relief from April 2025.<\/p>\n The Employment Allowance, which allows companies to reduce their National Insurance liability, is set to increase from \u00a35,000 to \u00a310,500.<\/p>\n Inheritance tax thresholds will be frozen for another two years until 2030. Inherited pensions will be subject to inheritance tax from April 2027, with changes to agricultural relief. The measures aim to raise over \u00a32 billion a year.<\/p>\n The non-dom tax regime will be abolished. A new, residence-based scheme with \u201cinternationally competitive arrangements\u201d will be introduced for temporary visitors to the UK as part of a package of changes aiming to raise \u00a312.7 billion over five years.<\/p>\n The main rate of Corporation Tax which is paid by businesses with taxable profits over \u00a3250,000 is set to remain at 25% until the next election.<\/p>\n \u00a31 million Business Asset Disposal Relief to be retained but at an increasing rate.<\/p>\n Business rates\u2014The existing 40% on business rates for the retail, hospitality, and leisure industries will continue in 2025\/6, up to a cap of \u00a3110,000 per business.<\/p>\n On business rates, from 2026-27, the Treasury intends to introduce two permanently lower tax rates for retail, hospitality and leisure properties, paid for by a higher multiplier for the most valuable properties.<\/p>\n Capital Gains Tax rates on carried interest will increase to 32% from April 2025, with further reforms the following year.<\/p>\n Capital Gains Tax will rise to 18% from 10% for lower-rate taxpayers and to 24% from 20% for higher-rate payers. However, the Tax on the sale of residential homes will remain steady at 18% to 24%.<\/p>\n The pension credit will rise by 4.1% from around \u00a311,400 per year to around \u00a311,850 for a single pensioner. The Chancellor also announced a state pension triple lock, and spending on the state pension is projected to rise 4.1% in 2025-26.<\/p>\n The stamp duty surcharge paid on second home purchases in England and Northern Ireland will increase from 3% to 5%.<\/p>\n Social housing providers to be allowed to increase rents above inflation under multi-year settlement.<\/p>\n A new housing package will deliver up to 5,000 new affordable social homes with \u00a3500 million in new funding for the Affordable House Programme.<\/p>\n Chancellor Rachel Reeves said she will crack down on fraud in the UK\u2019s welfare system as part of reforms to ensure welfare spending is \u201cmore sustainable.\u201d The Chancellor said the government will publish a \u201cGet Britain Working\u201d white paper designed to get the unemployed back to work and reduce the strain on the benefits system.<\/p>\n If you are looking for an FCSA-accredited<\/strong>\u00a0<\/a>and SafeRec-certified<\/strong><\/a> umbrella company, look no further. Churchill Knight Umbrella has over 25 years of experience supporting contractors and freelancers with a compliant payroll service to help them get paid for their temporary assignments.<\/p>\n For more information about our umbrella service<\/strong><\/a> or to request a take-home pay illustration<\/strong><\/a>, please call our expert Sales Consultants on\u00a001707 871622<\/strong><\/a>. You can also\u00a0schedule a call<\/strong><\/a> for a time that suits you, and a member of the team will contact you.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" Today (30th October 2024), the Chancellor of the Exchequer, Rachel Reeves, presented Labour\u2019s first Budget in 14 years to Parliament. The Autumn Budget 2024 pledges to raise around \u00a340bn for government programmes focused on \u201cnational renewal\u201d and narrowing the growing \u201cblack hole\u201d in public finances. Our latest article highlights the key announcements in the Autumn […]<\/p>\n","protected":false},"author":1,"featured_media":107758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[24668,5685,4995,1088],"dealstore":[],"offerexpiration":[],"class_list":["post-107756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-announcements","tag-autumn","tag-budget","tag-key"],"yoast_head":"\nAutumn Budget 2024 <\/strong><\/h2>\n
Key announcements in the Autumn Budget 2024 <\/strong><\/h2>\n
Tax<\/strong><\/h2>\n
National Minimum Wage<\/strong><\/h3>\n
Tax avoidance <\/strong><\/h3>\n
Employers National Insurance <\/strong><\/h3>\n
Income Tax <\/strong><\/h3>\n
VAT on private school fees<\/strong><\/h3>\n
Employment Allowance <\/strong><\/h3>\n
Inheritance Tax<\/strong><\/h3>\n
Non-dom tax regime<\/strong><\/h3>\n
Corporation Tax<\/strong><\/h3>\n
Business Asset Disposal Relief<\/strong><\/h3>\n
Business rates <\/strong><\/h3>\n
Capital Gains Tax <\/strong><\/h3>\n
Pensions <\/strong><\/h3>\n
Housing <\/strong><\/h2>\n
Benefits and fraud crackdown<\/strong><\/h2>\n
Other announcements<\/strong><\/h2>\n
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