Finance Bill 2024: Get Ready for a Taxing Year

The Finance Bill 2024 is making its way through Parliament, and with it comes a slew of proposed changes to our tax system. Some of these changes are good news, while others are sure to put a dent in your wallet.

Here are some of the key changes that you need to know about:

• Personal allowance: The personal allowance is increasing from £12,570 to £13,000. This means that you will be able to earn more money before you start paying income tax.
• Income tax rates: The rates of income tax will be changing slightly. The basic rate will remain at 20%, but the higher rate will increase from 40% to 41%. This means that you will pay more tax on any income that you earn over £50,270.
• National Insurance Contributions: The rates of National Insurance Contributions (NICs) will be increasing. The employee rate will increase from 12% to 13.25%, and the employer rate will increase from 13.8% to 15.05%. This means that you will pay more NICs on your earnings, and your employer will also have to pay more NICs on your behalf.
• Corporation tax: The rate of corporation tax will be gradually reduced from 19% to 17% by 2024. This means that businesses will pay less tax on their profits.
• Fuel duty: Fuel duty is set to increase by 5p per liter. This means that it will cost more to fill up your car.
• Vehicle excise duty: Vehicle excise duty (VED) rates will be increasing for some vehicles. This means that you could pay more tax on your car.
• Air passenger duty: Air passenger duty (APD) rates will be increasing for some flights. This means that it will cost more to fly.

These are just some of the key changes that are being proposed in the Finance Bill 2024. It is important to note that these changes are still subject to change, and they may not all be implemented in their current form.

If you are concerned about how the Finance Bill 2024 will affect you, it is important to speak to a financial advisor.

In the meantime, here are a few tips to help you save money on your taxes:

• Make sure that you are claiming all of the tax allowances that you are entitled to.
• Consider salary sacrifice schemes. These schemes can help you to reduce your taxable income and save money on your tax bill.
• Invest in a pension. Pensions are a tax-efficient way to save for your retirement. Contributions to a pension are made before tax, and they are taxed when you withdraw the money.

By following these tips, you can help to reduce your tax bill and keep more of your hard-earned money.

The Finance Bill 2024 is a complex piece of legislation. It is important to understand the changes that are being proposed so that you can plan for the future. If you have any questions, please speak to a financial advisor.