Many of the announcements made by the Chancellor will have a significant impact on our personal finances. The additional cut to class 1 national insurance contribution (NIC) rates to 8% will see take home pay go up, while the self-employed class 4 rate also sees a reduction. For families hit by the high income child benefit charge, reforms to the regime see the threshold before they become liable go up by £10,000 to £60,000. Businesses see the VAT registration limit increased by £5,000 to £90,000.
Many key allowances and thresholds, however, remain frozen, so understanding the effects of existing tax levels and new measures announced for 2024/25 is key to your planning.