In the just-passed year of 2023, our tax team assisted thousands of businesses in their tax planning.
In 2024, the UK is set to undergo a series of tax changes.
If you live, work, or run a business in the UK, it’s essential to be aware of these new tax changes to avoid unnecessary complications.
Side-hustle Tax – January 1st
As previously mentioned, digital platforms will now directly report sellers’ financial information to HMRC.
Starting January 1, 2024. While online sellers are expected to be minimally affected.
it’s crucial to monitor your total annual income and ensure accurate tax reporting.
If you are an online seller, you may need to pay attention to the total annual income and pay taxes correctly.
If you’re using Airbnb or Vinted for extra income, be careful to file taxes.
National Insurance Rate Reduction to 10% – January 6th
In last year’s Autumn Statement, the government announced a reduction in the National Insurance rate from 12% to 10%.
This decision will directly impact the income of all employees for the 2023-2024 tax year, resulting in an average increase of £400.
If you’re an employer, be prepared to adjust for this change.
If you are our client, our tax team has adjusted the rate changes.
If you are self-employed, you can also expect to see changes to national insurance rates later this year.
Vaping Tax – March
Insiders suggest that the Chancellor will announce a tax on e-cigarettes in the Spring Budget.
This new tax is expected to increase the cost of e-liquids by over 25%.
Specific tax details may mirror those of other European countries, likely imposing a tax based on the volume of liquid per 10ml.
Details of the full vaping tax will be announced in the Spring Budget and will be taxed as scheduled.
National Minimum Wage Increase – April
Starting April this year, the national minimum wage for those aged 21 and over will increase to £11.44 per hour.
There will be corresponding increases for other age brackets, alleviating living pressures for families.
Employers should ensure that their employees receive at least the national minimum wage or higher.
Capital Gains Tax (CGT) – April
If you sell or transfer certain business assets, you’re required to pay Capital Gains Tax on the profit earned.
However, starting April 2024, the CGT allowance will decrease to £3000 per year.
If your asset sale profit exceeds £3000, you’ll be liable for tax on the surplus.
Stay tuned for more updates on these tax changes throughout the year!
