To increase business investment, the government has announced a number of measures which could raise around £20 billion per year from businesses in a decade’s time. The changes include: Full Expensing will be made permanent. The removal of barriers to critical infrastructure by reforming the UK’s inefficient planning system and speeding up electricity grid connection […]
The existing Research and Development Expenditure Credit (RDEC) and SME schemes will be merged, with expenditure incurred in accounting periods beginning on or after 1 April 2024 being claimed in the merged scheme. The rate under the merged scheme will be set at the current RDEC rate of 20%. The notional tax rate applied to […]
A number of changes were made to the tax regime for pensions for 2023/24 and these include the following, which will remain at their 2023/24 levels for 2024/25: The Annual Allowance (AA) is £60,000. Individuals who have ‘threshold income’ for a tax year of greater than £200,000 have their AA for that tax year restricted. […]
The Chancellor announced major changes to the National Insurance contributions (NICs) system. Employees and NICs The government will cut the main rate of Class 1 employee NICs from 12% to 10% from 6 January 2024 so that employees can benefit as soon as possible. Comment According to the government, this will provide a tax cut […]
Income tax rates The government has stated that the basic rate will remain at 20%, the higher rate at 40% and the additional rate at 45% for 2024/25. The government reduced the point at which individuals pay the additional rate of 45% from £150,000 to £125,140 for the current tax year and this will continue […]
