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Spring Budget 2024: what small businesses need to know

Written by: Mettle editorial
Contribution by: Chris Mollan, Founder and Managing Director, Clever Accounts
4 min read

The Chancellor announced his Spring Budget today, highlighting some changes that could impact small business owners and the self-employed.


VAT threshold increase 

There will be an increase in the VAT registration threshold for small businesses, from £85,000 to £90,000 from April 2024. 

All businesses that provide ‘taxable’ services or goods and have a turnover – the amount of money received from selling goods or services before taking off any costs – that is higher than the UK threshold must register for VAT. You can find out more about VAT in our guide.

"It will be a relief for a small percentage of businesses operating close to the current threshold of £85,000, offering some scope to increase their fees, grow their business further or delay the administrative burden of registering for VAT. The de-registration limit will also be increasing to £88,000, meaning that you will be able to de-register sooner, should your business turnover reduce."

Chris Mollan
Founder and Managing Director, Clever Accounts

National Insurance cut

The Chancellor has announced a cut to self-employed national insurance, from 8% to 6% and a 2p cut to National Insurance. This could save the average worker £450 a year, rising to £900 when combined with a similar reduction announced last autumn or £350 for someone self-employed.

Support for SMEs

The government is calling 2024 "the year of the SME". To support SMEs accessing the finances they need, the Chancellor is extending the Recovery Loan Scheme and renaming it as the “Growth Guarantee Scheme”. This will run till the end of March 2026 and will offer a 70% government guarantee on loans to SMEs of up to £2 million in Great Britain, and £1 million in Northern Ireland.

"The Chancellor also said he will widen the tax relief on capital costs by including leased assets in the permanent full expensing regime, allowing companies to write off the cost of the investment in assets, in one go."

Chris Mollan
Founder and Managing Director, Clever Accounts

There will also be updated HMRC guidance on the tax deductibility of training costs for sole traders and the self-employed.

You can read about all the changes announced today in the HM Treasury’s policy paper.

Disclaimer: The content of this blog is based on our understanding of the topic at the time of publication and should not be taken as professional advice. Any of the information may be subject to change. You are responsible for complying with tax law and if in doubt, should seek independent advice. 

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At Mettle, our aim is to give everyone the financial confidence to work for themselves, and that’s no different with our content. We want to give small business owners, freelancers and sole traders the tips, tricks and industry updates they need to run their businesses. 

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