Spring Budget 2024 – Employees and Employers
The Chancellor, Jeremy Hunt, has delivered the Budget, setting out the government’s plans for taxation and spending in the coming period.
In this article, we set out an initial summary of the key changes for employees and employers.
National Insurance
As anticipated, employee National Insurance has been cut by 2 percentage points, down from 10% to 8%. Likewise, self-employed National Insurance has also been cut by 2 percentage points, bringing it down from 8% to 6%.
These reductions are in addition to the cuts announced the Autumn Statement and the Chancellor indicated that further cuts to National Insurance may be made in future.
Child Benefit
Under the current system, the High-Income Child Benefit Charge must be paid by parents claiming Child Benefit where either parent has an adjusted net income of over £50,000 a year.
The Chancellor indicated that a move to a household income-based system was being considered, with the aim for such as system to introduced in April 2026. In the short-term, from April 2024, the threshold for paying the High-Income Child Benefit Charge will rise from £50,000 to £60,000, with the high-end of the taper for this charge increasing to £80,000.
Immigration
While no express changes were announced to immigration policy, the Chancellor made repeated references to a choice not to rely on immigration to achieve economic growth. This would suggest that the Government’s immigration policy is going to continue down its current path, with higher salary thresholds, the abolition of the Shortage Occupation List, and more restrictive rules on students and dependants.
We are expecting the Home Office to confirm changes to the Immigration Rules on 14 March 2024, setting out how the new salary thresholds for Skilled Worker and Family visas will work in practice.
