Chancellor Jeremy Hunt has revealed a range of measures which he says aim to benefit start-ups and small and medium size enterprises (SMEs) in the Spring Budget, including raising the Value Added Tax (VAT) threshold.
Among the measures, Hunt announced £200m to extend business rate support for SMEs.
He also increased the VAT threshold to £90,000 from £85,000.
In his House of Commons speech, Hunt said the best way to improve economic productivity is through investment.
As announced, the government will introduce legislation to reduce the main rate of primary Class 1 National Insurance contributions by 2 percentage points from 10% to 8% from 6 April 2024. For the self-employed, the government will introduce legislation to reduce the main rate of Class 4 National Insurance contributions by 2 percentage points from 8% to 6% from 6 April 2024. This is in addition to the previously announced reduction in the main rate of Class 4 National Insurance contributions from 9% to 8%, and means that from 6 April 2024 the main rate will reduce from 9% to 6%.
To view the full Spring 2024 Budget click here.