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Spring Budget 2024 Summary


Spring Budget 2024

As the seasons change, staying informed about financial updates is crucial for businesses. At Grenfell James, we’re dedicated to keeping you in the know. Today, we’re pleased to share a concise summary of the Spring Budget 2024, expertly crafted by our Senior Client Manager, Helen Gill.

Helen’s experience and attention to detail mean you’ll get clear insights into how the Spring Budget impacts you. This summary breaks down complex information from tax changes to financial policies into easy-to-understand points.

Let’s examine Helen’s key takeaways, which will give you the knowledge you need to navigate the financial landscape confidently.

Spring Budget 2024 Highlights

1. Reduction in Class 4 National Insurance Tax Rates for Self-Employed Individuals:

  • Starting April 6, 2024, self-employed individuals will see a decrease in their Class 4 National Insurance tax rates from 8% to 6% for profits ranging between £12,570 and £50,270.
  • This translates to lower tax payments to HMRC and tax relief for the 2024/25 tax year.

2. Reduction in Employee National Insurance Rates:

  • Also effective from April 6, 2024, employed individuals will experience a reduction in their Employee National Insurance rates from 10% to 8%.
  • This will increase take-home pay, assisting with the current cost-of-living crisis and alleviating double taxation for employees paying PAYE and National Insurance.

3. Increase in High-Income Child Benefit Tax Charge Threshold:

  • The threshold for the high-income child benefit tax charge will rise to £60,000 from £50,000 on April 6, 2024.
  • Starting in April 2026, this charge will be reformed to consider household income rather than individual income, benefiting more families and providing additional funds each year.

4. Abolishment of Tax Relief for Furnished Holiday Lets:

  •  As of April 2025, tax relief for furnished holiday lets will be abolished.
  •  This change aims to increase the availability of properties for long-term rents, addressing the housing crisis. However, it will result in higher taxation on this income for individuals on their tax returns.

5. Increase in VAT Registration Threshold:

  • Beginning April 1, 2024, the VAT registration threshold will rise to £90,000 from £85,000.
  • This adjustment allows smaller businesses to generate more revenue before VAT becomes compulsory, with the option for voluntary registration for businesses below this threshold.

6. Reduction in Capital Gains Tax Rates on Residential Property for Higher Rate Taxpayers:

  • Effective April 2024, higher-rate taxpayers will benefit from a reduction in capital gains tax rates on residential properties, which will decrease from 28% to 24%.
  • This applies to individuals with multiple properties, resulting in lower tax payments upon property sales.

7. Abolishment of Stamp Duty Multiple Dwellings Relief:

  • From June 2024, stamp duty multiple dwellings relief will be abolished.
  • This change will increase tax payments when purchasing multiple properties, necessitating budget adjustments for property buyers.

8. Extension of Full Expensing Rules for Capital Allowances:

  • Limited companies will enjoy further tax relief as full expensing rules for capital allowances, including leased assets, are extended.
  • The government will determine the start date for this extension, which will provide 100% tax relief on qualifying expenditures and reduce corporation tax liabilities.

We encourage you to explore the Spring Budget 2024 in full for a comprehensive understanding. You can view it on www.gov.uk here.

At Grenfell James, we understand the importance of these changes and their impact on your business. If you’re a small business owner seeking guidance on navigating these developments, our team is here to help. Reach out today to explore how we can simplify and revolutionise your business.

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Grenfell James Technology Adoption Index

How does your business perform against others adopting financial tech? Find out with our interactive diagnostic:


How does your business receive invoices?


Invoices are mainly received in paper form


Invoices are mainly received by email


Invoices are emailed then automatically forwarded to a designated mailbox


How are purchase invoices processed?


Invoices are entered manually


Invoices are attached to manually raised invoices


Automated software (e.g. ReceiptBank, 1Tap, HubDoc etc) collates invoices


How are accounts processed?


Using Excel/paper-based


Using Computer-based, offline software


Using cloud-based accountancy software


How often is business data revised?


Data is updated annually


Data is updated quarterly


Data is updated monthly or more often


How is banking updated for your business?


Banking is updated manually


Banking is updated by imports


Banking is updated via a live feed


How are bank payments made?


Bank payments are manual


Bank payments are made using bulk imports


Bank payments are made directly via accounting software


How are bank receipts reconciled?


Receipts are chased and reconciled manually


Receipts are chased and reconciled automatically


A third-party platform is used to chase debts and collect fees


How often are management reports produced?


No reports are provided


Reports are provided but often too late to be valuable


Reports are automated with real-time information

Score 8-12:

Curious Exploration

Your financial technology phase is Curious Exploration

% of respondent businesses are in this phase too.

Switching accountancy systems may seem like an upheaval, but can be much more straightforward than most businesses imagine. From talking to our clients, they have found moving from paper invoicing and desktop-based accounting software to the cloud and apps quickly makes the transition process a worthwhile investment of time. Digital accounting solutions bring in streamlined processes, up-to-date business data and greater confidence in the accuracy of information when making financial decisions.

Grenfell James works with your team to fully assess the needs of your business and minimise the impact of any transitions for solutions we recommend.

Find out more about App Advisory


Score 13-19:

Measured Discovery

Your financial technology phase is Measured Discovery

% of respondent businesses are in this phase too.

Once cloud accountancy software is in place, there’s still plenty of scope to improve your accountancy processes and make sure your business is maximising the benefits of adopting a digital accounting solution. Grenfell James assesses each business to understand how any implemented solutions are being used, identify areas for improvement and the needs of the business overall to support your business goals and achieve success.

Our team of experts can discuss a range of time-saving automation and get different apps and cloud-based solutions talking to create and manage a digital accountancy eco-system to help your business grow.

Find out more about App Advisory


Score 20-24:

Bold Innovation

Your financial technology phase is Bold Innovation

% of respondent businesses are in this phase too.

You know the benefits of accounting technology and the impact it can have on your business goals. If you want to take it a step further, our team can conduct a systematic review of your processes, apps and business goals to ensure your digital accountancy ecosystem is keeping pace with the changing needs of a growing business.