National Insurance Cuts

From 6 April 2024, around 29 million workers will experience National Insurance rate cuts:

■ Employees: The rate for annual earnings between £12,570 and £50,270 will drop from 10% to 8%.

■ Self-employed: The rate for annual profits in the same range will decrease from 9% to 6%.

■ These cuts follow an earlier reduction from 12% to 10% in January 2024.

■ The average worker earning £35,400 annually will save over £900 due to these rate cuts.

Child Benefit Rules Overhaul affecting HICBC

The Spring Budget addresses 'unfairness' in the Child Benefit system.

HICBC (High Income Child Benefit Charge) will apply to earnings above the threshold of £60,000.

For every £200 over the threshold, 1% of Child Benefit will need to be refunded. 

If any parent earns £80,000 or more then the Child Benefit will need to be repaid to HMRC in full.

Childcare Funding Confirmation

Funding for childcare providers is confirmed to deliver promised 'free' (funded) childcare hours for parents.

Debt Relief Order Fee Scrapped

In England and Wales, the £90 debt relief order fee will be eliminated.

Universal Credit Enhancements

Universal Credit claimants will receive more time to repay 'Budgeting Advances'.

Household Support Fund Extension

Vulnerable households will receive an extra £500 million in support through an extension of the Household Support Fund.

New Savings Initiatives

NS&I will launch 'British Savings Bonds'.

A new 'UK ISA' will be introduced.

Other Tax Changes 

Air Passenger Duty will rise in 2025/26.

Vaping products will face increased taxation from 1 October 2026.

Fuel duty is also frozen again.

Personal Tax thresholds 

Personal Tax thresholds remain frozen, potentially resulting in higher tax payments.

Tax Free Personal Allowance

Tax Free Personal Allowance will remain at £12,570 for the Tax Year.

Lifetime ISA

No changes to Lifetime ISAs despite calls for an overhaul.