The 6th March 2024 UK Budget
On 6th March 2024, Chancellor Jeremy Hunt presented the most recent UK Budget. In this Budget, he announced major tax and spending plans. Key points from the announcement are detailed below:
National Insurance cuts. In January this year, there was a drop in Class 1 National Insurance from 12% to 10% (see the National Insurance section for more details). In April 2024, this will fall to 8%. This could save you up to a further £754 per year from the cuts in January, depending on your monthly income. If you are self-employed, Class 4 NI contributions on your earnings between £12,570 and £50,270 will now be cut down to 6%, from 9%.
Frozen income tax thresholds. Income tax thresholds will remain frozen until 2028 (at least) - if you therefore receive a pay rise you could enter into a higher tax bracket. Normally income tax thresholds would rise as prices rise. Details of the income tax thresholds are in the Tax on Your Salary section.
Child benefit will reach more families. Child benefit is currently impacted if one parent earns over £50,000 a year, and removed entirely if one parent earns £60,000 a year. From April 2024, the benefit will now be impacted at £60,000 a year and removed entirely at £80,000 a year. The benefit, currently at £24 per week for one child and £15.90 per additional child will rise to £25.60 and £16.95 respectively in April.
Extension of fuel duty cut. When you buy fuel for your vehicle, you pay tax on it called fuel duty. This has been frozen since 2011, and this will not change. The 5p a litre fuel duty cut put in place last year that was due to end this month - this now be extended for another year. Fuel duty therefore remains at 53p a litre. This will save you £50 for every 1000 litres of fuel you put in your car (the estimated average car driver's usage).
British ISA. A new Individual Savings Account (ISA) will be introduced allowing you to save an additional £5,000 a year tax free on top of the current £20,000 allowance. Money invested in your British ISA will be directed to British businesses. The start date of the British ISA is unknown.
Council tax. Councils have been under financial pressure to raise council tax, and the plans vary across the UK. In Scotland, council tax is frozen until 2025, but monthly bills will rise as they incorporate water bill increases. The 6th March Budget gave councils in England until 11th March to decide what there increases would be. The majority of areas will increase by 4.99%, but some areas, such as Birmingham, will increase by 10%. In Wales, proposals to the increase vary from 3% to 16%, and 4% to 10% in Northern Ireland. For your specific area, you can check your local authorities website (list of sites can be accessed here). If you're unsure who your local authority is, you can check on the gov.uk website here.
Vaping, smoking and alcohol. In October 2026, a new duty will be introduced on vaping products, and tobacco duty will increase. Full details are here. The current freeze on alcohol duty will remain in place until February 2025.
The points above are those that are most likely to impact members of the UK Armed Forces and their families. For more details, this BBC News article is a great source of information.
National Insurance cuts. In January this year, there was a drop in Class 1 National Insurance from 12% to 10% (see the National Insurance section for more details). In April 2024, this will fall to 8%. This could save you up to a further £754 per year from the cuts in January, depending on your monthly income. If you are self-employed, Class 4 NI contributions on your earnings between £12,570 and £50,270 will now be cut down to 6%, from 9%.
Frozen income tax thresholds. Income tax thresholds will remain frozen until 2028 (at least) - if you therefore receive a pay rise you could enter into a higher tax bracket. Normally income tax thresholds would rise as prices rise. Details of the income tax thresholds are in the Tax on Your Salary section.
Child benefit will reach more families. Child benefit is currently impacted if one parent earns over £50,000 a year, and removed entirely if one parent earns £60,000 a year. From April 2024, the benefit will now be impacted at £60,000 a year and removed entirely at £80,000 a year. The benefit, currently at £24 per week for one child and £15.90 per additional child will rise to £25.60 and £16.95 respectively in April.
Extension of fuel duty cut. When you buy fuel for your vehicle, you pay tax on it called fuel duty. This has been frozen since 2011, and this will not change. The 5p a litre fuel duty cut put in place last year that was due to end this month - this now be extended for another year. Fuel duty therefore remains at 53p a litre. This will save you £50 for every 1000 litres of fuel you put in your car (the estimated average car driver's usage).
British ISA. A new Individual Savings Account (ISA) will be introduced allowing you to save an additional £5,000 a year tax free on top of the current £20,000 allowance. Money invested in your British ISA will be directed to British businesses. The start date of the British ISA is unknown.
Council tax. Councils have been under financial pressure to raise council tax, and the plans vary across the UK. In Scotland, council tax is frozen until 2025, but monthly bills will rise as they incorporate water bill increases. The 6th March Budget gave councils in England until 11th March to decide what there increases would be. The majority of areas will increase by 4.99%, but some areas, such as Birmingham, will increase by 10%. In Wales, proposals to the increase vary from 3% to 16%, and 4% to 10% in Northern Ireland. For your specific area, you can check your local authorities website (list of sites can be accessed here). If you're unsure who your local authority is, you can check on the gov.uk website here.
Vaping, smoking and alcohol. In October 2026, a new duty will be introduced on vaping products, and tobacco duty will increase. Full details are here. The current freeze on alcohol duty will remain in place until February 2025.
The points above are those that are most likely to impact members of the UK Armed Forces and their families. For more details, this BBC News article is a great source of information.