Earlier today, the Chancellor of the Exchequer, Jeremy Hunt took to his feet to unveil his “budget for long term growth”. In his opening of his Autumn statement in November – see note here - he referenced the need to ‘support entrepreneurs in raising capital’ however there were relatively few measures announced in today’s Budget that directly impact start-ups and entrepreneurs outside of measures for specific industries. 

Key announcements include:

• the VAT registration threshold will be increased from £85,000 to £90,000 from the start of April, saying it would help “tens of thousands of businesses”
• full expensing for businesses will apply to leased assets in future. Full expensing allows businesses to offset investment in items such as machinery and IT equipment against tax. We expect to see a draft bill shortly
• a reduction in the main rates of Primary Class 1 and Class 4 National Insurance contributions from 6 April 2024. Class 1 NICs will be cut from 10% to 8% and the main rate of Class 4 NlCs from 8% to 6%. In addition, the government will consult on the abolition of Class 2 National Insurance contributions later this year
• new tax reliefs for creative sector, advanced manufacturing and life sciences

There are however a number of announcements that will impact individuals, notably the abolition of non-dom status. A note from my colleague on this can be found here.

This summary is intended to provide a first point of reference for current developments in aspects of the law. It should not be relied on as a substitute for professional advice.

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