Welcome to our Budget 2025 round-up.
Here we list the key announcements with analysis from experts within Fairstone and some potential actions for you to consider.
To talk to one of our advisers today, simply call 0800 884 0840 or click here.
| Personal allowance | £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | £125,141 and above | 45% |
“While the Government has stuck to its promise not to raise headline rates of income tax, National Insurance and VAT, freezing thresholds for three more years will drag more and more people into higher rates of tax.
“To put it in context, if income tax thresholds had risen in line with inflation from 2021, you would not start paying the higher rate of tax until you earned around £65,000. As it is, you’re going to be paying 40% on £15,000 rather than 20% and clients will feel the impact of this if they’re employed.” – Harry Sims, Chartered Financial Planner
If you are close to one of the current tax thresholds, there is a good chance that pay rises over the next four to five years could take you into a higher rate of tax.
This could affect not just your take-home pay but also access to things such as childcare vouchers, which offer up to 30 hours of free childcare per week.
If you or your partner earns over £100,000 a year, your entitlement to this, and other childcare assistance will be reduced.
Talk to an adviser about how you could divert some of your salary into pension savings, which could avoid this cliff-edge scenario, enable you to reclaim some of this childcare support, and help boost your retirement pot.
“The fact that the tax-free lump sum remained the same despite claims that the Government was looking to cut it is a perfect case in point of waiting to hear what is announced in the Budget rather than acting on rumours.” – Oliver Stone, Investment Director.
“While it won’t affect a lot of individuals by a large amount of money, it will make salary sacrifice pension schemes more expensive to run for employers and the introduction of the £2,000 ceiling could cause a potential administration issue.
“Is this the first death knell for salary sacrifice schemes as a whole?” – Mike Palmer, Corporate Financial Adviser
If you are an employee saving into a workplace pension, you now have up to three years to maximise these contributions.
Talk to an adviser on potentially restructuring how you save for your retirement, particularly taking into account the extension of the freeze on income tax thresholds.
If you are an employer operating a salary sacrifice pension scheme, this is a good opportunity to review the scheme in consultation with an adviser since its continuing operation could have quite an impact on your bottom line.
The fact that the change does not come into force until 2029 gives you breathing space to address the issue, potentially in conjunction with other employee benefits you offer.
“Using the stocks and shares ISA wrapper and tax-free allowances is more important than ever, given the reduction in the cash ISA allowance for under 65s, and the savings and dividend tax rate increases for all, potentially applicable to monies held outside ISAs.” – Andrew McErlean, Chartered Financial Planner
“There were no nasty shocks in the Budget – the market reaction has been better than for last year’s Budget – and the Stamp Duty Reserve Tax change for new IPOs is a tiny bit of positivity.” – Oliver Stone
The change to the ISA regime gives investing in a stocks and shares ISA for under-65s a clear advantage over investing in a cash ISA from a tax efficiency point of view.
While investments can go down as well as up, in her Budget speech the Chancellor said that someone who had invested £1,000 a year in an average stocks and shares ISA every year since 1999 would be £50,000 better off today than if they’d put the same money into a cash ISA.
Talk to an adviser about whether investing in a stocks and shares ISA is right for you and, if so, what level of investment risk you would be comfortable with.
“While the surcharge won’t affect the purchase market too much, valuation will be an issue. Who decides whether a property is worth £2m or more and how often will that be valued?
“The changes to taxation on property income will hit the buy to let market. It has been decreasing for quite a while and this will only make it worse.” – Emily Cadmore, Mortgage Adviser
If you currently rent a home, the increase in tax on property income could see rental levels rise further as landlords look to recoup money lost.
Talking to a financial adviser could help you to find the most competitive mortgage rates and get a good deal.
“For business owners taking dividends rather than salaries, they will be paying a bit more tax, so this is not hugely positive for SMEs on a day to day basis.” – Mike Palmer
“VCTs are often the next place higher earners might consider to maximise tax relief, once they have maximised pension contributions so for the likes of C-suite executives and top paid legal/accountancy professionals, this will impact the VCT’s attractiveness as an investment.” – Andrew McErlean
A combination of shrinking tax-free allowances and rising tax rates means that reviewing where you put your money across property, savings and investments is vital to ensure it is working as hard as possible.
An adviser will help you to look at maximising available allowances and allocating your investments in the most tax-efficient way possible in order to achieve your financial goals.
“The rise in the minimum wage is likely to be of more immediate concern to business owners than changes to the salary sacrifice regime. Even business owners who currently pay more than the minimum wage may have to consider pay rises to maintain wage differentials to their competitors.” – Mike Palmer
If you are a business owner, this is likely to add to your wage costs. Talk to an adviser about other workplace benefits which you could put in place to recruit and retain employees – such as group life assurance and private medical cover – but which will cost your business less than a larger across the board pay rise.
Get in touch today to speak to us about any of the issues raised in this article.
You can also download our comprehensive Budget 2025 guide by clicking here.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
The group, which provides financial planning and wealth management to over 125,000 clients, including over 60,000 wealth clients, saw a 21% year-on-year increase in revenue and pro forma fee income to £168m in the year to the end of December 2024.
Fairstone is delivering growth through a clear strategy of organic expansion and targeted acquisitions.
The group has invested in its UK and Ireland network, establishing 12 regional hubs – 10 in the UK and two in Ireland – that are being developed into fully operational centres.
These hubs will reflect the structure of Fairstone’s head office, embedding core functions within local teams to improve delivery and support.
As well as expanding its physical footprint, Fairstone has also been developing its digital-first service, Mineral, which offers expert financial advice via video call.
Mineral is helping to address the advice gap by making professional financial advice more accessible and more affordable.
Fairstone identifies Mineral as its solution to closing the advice gap and is now embedding the service across its national infrastructure. The platform is designed to support individuals who are accumulating wealth and seeking to grow their financial position, offering accessible advice through a digital-first experience.
Fairstone’s Downstream Buy-Out (DBO) acquisition programme continues to stand out in the industry. Recent refinements have made it more appealing to firms seeking investment and operational support.
Earlier this year, the group concluded its 100th DBO partnership deal with Yorkshire-based Richardson Premier Wealth Ltd joining the programme.
In the 13 years since the DBO programme was started, it has been a major factor in Fairstone growing the amount of client assets under management (AUM) to £20bn. Enhancements to the model are expected to drive further acquisitions in the coming years.
Fairstone’s success has been underpinned by strengthening its leadership team. Last month, the group announced that former Aldermore Bank CEO Steven Cooper CBE has been appointed as its new Chief Executive Officer.
Steven, who takes up his post later this autumn, will take over as CEO from Fairstone founder Lee Hartley, who becomes Deputy Chair.
The enhanced leadership team, investment in existing operations and further strategic acquisitions will drive Fairstone’s ambition to double the size of its business to £40bn of client assets under management by the end of 2030.
David Hickey, Independent Chairman at Fairstone, said: “This is another strong set of results for Fairstone and is a tribute to the hard work, dedication and determination of our excellent team.
“With £20bn of client assets under management, our continued growth reflects the ongoing success of our client-focused approach, providing chartered, trusted and independent advice at every life stage.
“The announcement of our new CEO, Steven Cooper CBE, and the signing of our 100th Downstream Buy-Out deal this year, makes us ideally placed to scale further across the UK and Ireland.
“We have our sights firmly set on helping many more people make confident, informed financial decisions about their future as we target £40bn of client assets under management by the end of 2030.
“Fairstone continues to be recognised as a trusted, independent, and chartered financial advice firm, committed to delivering high-quality service across every stage of the client journey.
“With over 14,000 verified reviews on Trustpilot and a satisfaction rating of 98%, our reputation is built on consistent client outcomes and a strong focus on professional standards.”
From missed call scams to tax scams, inheritance scams to HMRC scams, the number and frequency of financial services scams continue to be on the rise.
In this article, we look at some of the most common scams, how to stay safe and what to watch out for.
At its most basic level, a scam is something which appears at first glance to be legitimate but is in fact a way to trick people out of money or personal details which can then be used to steal their money.
With advances in technology, these scams have become increasingly sophisticated, harder to identify and more difficult to avoid.
Scammers use a range of different media from phone calls to messaging apps to target potential victims.
They also employ time pressures such as fake deadlines to encourage people to act before thinking.
Scams can take many forms – here are some of the most common to watch out for:
This is where scammers pose as representatives from legitimate organisations like the Financial Conduct Authority (FCA), banks, or government bodies to gain trust and access sensitive information.
They often send official-looking emails complete with logos and contact details in order to fool the recipient.
FCA scams in particular are becoming more prevalent – the authority received almost 5,000 fake FCA scam reports in the first half of 2025.
One of the most FCA scams to watch out for is fraudsters claiming the FCA has recovered funds from a cryptocurrency wallet opened illegally in the potential victim’s name.
Another FCA scam sees fraudsters claiming a County Court Judgment has been taken out against a potential victim who then needs to pay the FCA the monies owed.
Fraudsters can also pose as representatives of HMRC in an effort to carry out tax scams.
One such common tax scam is an HMRC email offering either a tax refund or requiring the payment of additional tax.
Investment opportunities that seem too good to be true invariably are.
Investment scams commonly offer high returns, guaranteed returns or a combination of the two.
Fraudulent investments often involve overseas territories or property investments with an alluring brochure.
Scam cryptocurrency investments are also on the rise as fraudsters use new technology to convince people to part with their money.
Fraudsters also use fake endorsements from well-known business people or TV personalities as a way of scamming victims. MoneySaving Expert founder Martin Lewis consistently issues scam warnings, most recently highlighting deepfake AI videos promoting fake investment schemes and cryptocurrency. He also calls out fake adverts, cold calling, and imposters claiming to work for him.
This is a common tactic used in financial services scams where people receive emails apparently from a trusted source. This can include from people at your workplace or from people you know.
These phishing emails prompt the victim to click on a link and enter login details or personal information.
Fraudsters also use phishing in apps and social media platforms. Here they ask for login details to access your account to read a story or look at a picture.
This scam is similar to phishing, but this time, fraudsters use phone calls to try to extract personal details or convince you to transfer money.
Common vishing scams include messages claiming the unauthorised use of bank or credit cards for Amazon purchases, voicemail scams and missed call scams.
Other financial services scams which use vishing include fraudsters posing as representatives from financial institutions offering access to new investments or savings accounts. It is also common for fraudsters to alert you to a fake fraud and ask you to move money to a different account “for safety”.
Vishing scammers can also pose as representatives of government bodies and law enforcement agencies.
This is a particularly unpleasant form of scam where fraudsters target a vulnerable person and build trust over time.
A fraudster will not ask for money or personal details straight away but will work to gain the trust of the potential scam victim.
Only when this has happened will the fraudster make their move and carry out their scam.
This is known as ‘pig butchering’ as it likens the process to a pig being fattened up prior to being butchered.
Pig butchering scams rely on a relationship being built up so they often take place in arenas like dating apps or websites.
As well as losing money, victims of these scams often feel they have lost valuable relationships as well.
While fraudsters are becoming more sophisticated in the way they target victims, there are some useful rules you can follow to help combat scams.
Always take a moment to stop, think and challenge any suspicious requests.
Legitimate business representatives will not be offended or put off if you challenge what they ask for. Fraudsters may move on to the next potential victim.
If you’ve been targeted, always contact the relevant authorities so they can trace the fraudster and warn others.
If someone urges you to complete something quickly or tries to introduce other time pressures, that can be a sign of a scam. Ask why there is such a need for speed.
In a similar vein, be sceptical of investment ‘opportunities’ with high returns and a very limited time to ‘take advantage of’.
If you’re contacted unexpectedly by a financial firm, do not use the contact information they provide. Instead, find their official contact details on the FCA website or the Firm Checker and get in touch directly.
It’s also a good idea to carefully check email and website addresses. Fraudsters often use addresses that look convincing but have one letter out of place or an unusual ending such as ‘fcaonline’ or ‘fcagroup’.
It is really important to report any suspected financial scams to Action Fraud (the National Fraud & Cyber Crime Reporting Centre) and the FCA, as this helps them warn others and to monitor fraudulent activity.
Both Action Fraud and the FCA issue regular updates about scams, as well as hosting resources on how to beat the fraudsters.
Check out the FCA’s Fake FCA Communications page and Action Fraud’s Prevention page for more information and tips.
Staying safe from financial services scams is an important part of maintaining your financial health and welfare.
Some of the key things to watch out for to stay safe are:
At Fairstone, we have partnered with the Regional Economic Crime Coordination Centre (RECCC) to help raise scam awareness and safeguard the financial wellbeing of our clients and staff.
For more information on our approach, please click here.
To talk to one of our advisers, please get in touch.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. Always seek professional advice before making financial decisions.
Steven will take up the position later this autumn, bringing with him more than 30 years of experience in the financial services sector. Most recently, as Group CEO at Aldermore Bank, he led the business through a period of substantial growth, almost doubling its size after joining in May 2021, and helped the organisation earn recognition as one of the Sunday Times Top 10 Places to Work.
He has a long-standing career in financial services, having held a variety of senior positions in banking both in the UK and abroad, including Group CEO at C. Hoare & Co, the UK’s oldest privately-owned bank, and having led a number of Barclays’ businesses including as CEO at Barclaycard Business, Personal Banking for UK & Europe, and Business Banking in the UK.
Steven said: “I am thrilled to be joining Fairstone. As well as being one of the fastest growing wealth advisory firms in the UK and Ireland, it is also one of the most trusted by its clients.
“What drew me here was the clarity of purpose, doing the right thing for clients, building long-term relationships, and supporting people to make confident financial decisions.
“That approach aligns closely with my own values. I’ve always believed that integrity, stewardship, and high professional standards are essential to building trust and delivering strong outcomes.
“I’m looking forward to working with colleagues across the business to support our clients and help shape the next phase of Fairstone’s journey.”
Steven began his career aged 16 as a branch cashier at Barclays and has built a career that reflects his belief in social mobility and values-led leadership.
He served as Joint Chair of the Social Mobility Commission and was awarded a CBE in 2022 for services to banking and social mobility. Steven continues to champion inclusive opportunity across the financial services sector.
He is the current UK Chair of consumer credit reporting agency Experian PLC and has served as a Non-Executive Director on a variety of regulatory and listed boards.
Steven will take over as CEO from Fairstone’s founder Lee Hartley, who becomes Deputy Chair. Lee has led the business for the past 16 years, overseeing its growth into one of the UK’s most trusted chartered financial planning firms.
Earlier this year, Fairstone marked two significant milestones: reaching £20 billion in client assets under management (AUM) and completing its 100th partnership within the wealth management sector through its Downstream Buy-Out (DBO) investment model.
Lee Hartley commented: “Fairstone has reached a significant point in its journey, and I’m pleased to be handing over to Steven as he takes on the next phase of leadership. His experience and values are well aligned with the business as it advances towards its 2030 goals.”
With a client base of over 125,000 and annual revenues exceeding £175 million, Fairstone is now entering the next phase of its journey. Enhancements to the DBO model and a broadened long-term strategy will support the firm’s ambition to reach £40 billion in AUM by the end of 2030.
David Hickey, Independent Chairman at Fairstone, said: “I’m delighted to welcome Steven Cooper to Fairstone. His extensive experience leading major financial institutions and his in-depth understanding of retail financial services will bring invaluable insight to the group.
“I’m also really pleased that our founder, Lee Hartley, is stepping into the role of Deputy Chairman, allowing us to continue to benefit from his deep sector knowledge.
“The UK is entering a period of significant intergenerational wealth transfer, and families will need thoughtful, well-structured advice to pass on investments and protect their assets.
“There’s a real opportunity for advice led firms like Fairstone to support clients and their families through this transition, not just by offering financial expertise, but by helping people make confident, informed decisions about their future.
“With the appointments we have made, we have ensured Fairstone has the right leadership in place to guide clients through this transition and to continue delivering on our long-term goals.”
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After all the build-up, the resumption of higher US tariffs on imported goods and services on August 1 ended up being something of a damp squib.
Thanks to new trade deals agreed between the US and a host of countries and regions including the UK and the EU, the anticipated major fall-out – and consequential market turmoil – largely failed to happen.
But should all this really be a surprise – and what does it mean for investors?
The one thing which has been predictable since Donald Trump took office at the start of this year has been his unpredictability.
As a result, there are now signs that markets are starting to get used to the somewhat quixotic nature of Trump’s actions and almost pricing in the volatility which they inevitably cause.
Let’s look back to the start of April – ‘Liberation Day’ as Donald Trump called it – when the White House overnight imposed tariffs on goods and services from a vast swathe of countries.
It is fair to say that the decision caused chaos on the markets and leading indices around the world plunged into the red.
At Fairstone Investment Management, we got a lot of calls from advisers whose clients were worried about the value of their investments and how they could be affected by the global market volatility.
In the middle of the storm caused by the initial tariffs – and subsequent days when the US and China embarked on tit for tat tariff rises to three-figure percentages – it was difficult to maintain a steady course.
Yet within a space of a few days, those tariffs were placed on pause for 90 days and the markets calmed considerably.
US equities, which took a battering in the early part of April, recovered fairly swiftly afterwards and were back to all-time highs by the start of July. This suggests that investors see the fundamentals of the US economy as sound and are not anticipating a global slowdown in growth.
Even at the start of the week when the tariff pause was going to be lifted, there was relatively little volatility, suggesting that the markets were pretty sanguine about what was to come on August 1.
While the more punitive Trump tariffs of 50%-plus threatened on some countries have not been carried through, some countries such as Canada (35%), Switzerland (39%) and Brazil (50%) are still threatened with higher rates by the Trump administration for various reasons.
There was a brief surge in the price of copper on world markets after Trump said the US is considering imposing 50% tariffs on the metal. Other than that, reaction on the markets has been relatively subdued. For example, the FTSE 100 ended August 1 close to record highs of 9,100-plus, compared with the 7,544 it sank to in the immediate wake of ‘Liberation Day’ back in April.
The idea that these delays could become a pattern of behaviour from the White House is starting to gain ground. The TACO acronym (Trump Always Chickens Out) is beginning to be quoted by traders in increasing numbers.
However, to quote a more English metaphor, it is by no means certain that the US President will continue to march his men up to the top of the hill only to march them down again.
Markets remain wary of the potential for tariffs to ramp up at short notice and the potential longer term impacts of Trump tariffs on the US economy and global trade. As a result, markets and investors will keep watching the situation closely.
As stated at the start of this article, trying to predict Donald Trump’s next move is almost impossible.
Even though the threat of punitive tariffs has largely disappeared, the effective tariff rate being imposed by the US on the rest of the world is running at around 18%. This compares with levels of between 2% and 4% for the past 40 years.
There are signs that the policy is starting to reshape global trade flows. And while Trump is in the White House, there is always the chance of sudden changes in direction.
This whole episode is almost like an object lesson in the basic rules of investment:
If you had sold investments while the indexes were plummeting at the start of April only to buy them back when markets recovered, you could have lost a lot of capital. Attempting to time the sale and purchase of investments is extremely tricky, even for investment professionals, and unforeseen events can easily upset all your calculations.
Investing is a long-term pursuit and staying invested is more effective than trying to predict market highs and lows. Changing course too often may well mean you miss out on the benefits of recovery and even a few days out of the market can be costly.
Diversifying your investments can help to reduce risk. It also means that no single downturn – even if it’s temporary – can seriously impact the value of your portfolio.
Keeping informed is important, but in the world of instant news alerts and social media froth, you can get caught up in spirals of fear or euphoria. This can lead you to make bad investment decisions. Keep an ear out but don’t let the news cycle dictate what you do.
Investment managers and financial advisers have extensive experience of market swings, unforeseen events and all manner of economic shocks. Lean on that experience by taking professional financial and investment advice to ensure your plans are best placed to withstand the turbulence from Trump tariffs, trade wars or other events which could affect your financial future.
Tariffs are an excellent example of the unpredictable external forces which can impact your investment plan.
Keeping calm, staying the course and sticking to your long-term strategy is a wise way to deal with such events.
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Disclaimer: It is important to note that the value of investments and the income from them can go down as well as up and that you may get back less than the amount you invested. This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. Always seek professional advice before making financial decisions.
This collaboration combines Fairstone’s extensive client base and trusted advisory expertise with J.P. Morgan Asset Management’s global investment capabilities and proven track record, creating an effective partnership to deliver enhanced solutions for UK investors.
The partnership will see Fairstone utilise J.P. Morgan Asset Management’s global equity and global bond capabilities as core components of its new NOVA MPS (Managed Portfolio Service) range. The NOVA MPS will provide institutional-grade investment capabilities to retail clients at institutional pricing, delivering significant value at just 55 basis points.
Set to launch for new clients on 1st March, the range is designed to deliver proven investment solutions at a highly competitive price. Fairstone will seed the new range with over £500m on day one and anticipates that the exceptional quality and price of the offering will drive incremental assets into the Fairstone MPS ranges of £2bn over the next 12 months.
The strategic partnership extends beyond the NOVA MPS range, as Fairstone and J.P. Morgan Asset Management collaborate to develop further product innovations.
Speaking at the launch event, held at J.P. Morgan’s offices on London’s Embankment, Lee Hartley, CEO of Fairstone, commented: “Fairstone Investment Management was established to act as professional buyers of investment solutions, ensuring clients remain at the heart of our approach.
“The NOVA range, managed by Fairstone’s in-house investment management team, will feature segregated mandates run by J.P. Morgan Asset Management as cornerstone solutions. J.P. Morgan Asset Management was selected for their outstanding track record, with 88% of their global mutual fund assets under management outperforming their peers, and for the expertise of their team of over 1,300 global investment professionals.
“To remain the most trusted wealth management company and to continue delivering exceptional service to our 125,000 clients, we recognise the importance of partnering with leading suppliers. In J.P. Morgan Asset Management, we are confident we have found the right partner.”
Claude Kurzo, UK Country Head at J.P. Morgan Asset Management, added: “We’re excited to partner with Fairstone on launching an innovative new MPS solution that is expected to provide strong client outcomes at a very attractive price point. We also look forward to supporting Fairstone in helping their clients achieve their financial objectives, which includes leveraging our Guide to the Markets and training programs to support Fairstone’s advisers.”
Nick Stebbing, Chief Operating Officer at Fairstone, said: “This partnership delivers institutional-grade investing to retail clients, bridging a significant gap in the market. By working with J.P. Morgan Asset Management, we’re able to offer solutions that bring together robust performance and competitive pricing. This collaboration underscores our commitment to ensuring clients benefit from professional-grade strategies that were previously accessible only to large institutions.”
We have over 1250 local advisers & staff specialising in investment advice all the way through to retirement planning. Provide some basic details through our quick and easy to use online tool, and we’ll provide you with the perfect match.
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Fairstone Group has published its latest annual report, highlighting a 32% year-on-year increase in revenue, reaching £154m pro forma fee income in the last quarter of 2023.
In addition, Fairstone has exceeded £17bn of Funds Under Management and announced growth in every single one of its key areas – including client numbers, advisers, recurring income, gross margin, and profits.
Chancellor Jeremy Hunt positioned worker and parental tax cuts at the core of his Spring Budget 2024 in a move to bolster the economy. The most substantial change announced was a 2p reduction in the rate of Class 1 National Insurance paid by employees. This tax cut will be compensated for through tax rises in other areas, including business class airfares, short-term holiday let owners, vapes and tobacco.
By contrast, a few taxes remain unchanged, such as fuel duty and alcohol duty, thereby providing some relief to consumers. In addition, the income limit for parents to qualify for child benefits has been increased, expanding the number of families eligible for this support.
A new initiative, dubbed ‘British ISAs’, has been introduced to stimulate investment in UK companies. These ISAs grant an additional £5,000 tax-free allowance for savings invested domestically.
These moves by Mr Hunt are seen as an attempt to revitalise the economy while addressing key concerns of workers and parents. Our guide to the Spring Budget 2024 summarises the key points announced.
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Download our full budget guide
THIS ARTICLE REPRESENTS THE VIEWS OF THE ADVISER AND DOES NOT CONSTITUTE AS FINANCIAL ADVICE.
Chancellor Jeremy Hunt’s commitment in the Spring Budget 2024, he said, was to support Small and Medium Enterprises (SMEs) in the UK to build an economy that fosters a balanced and thriving business ecosystem.
The Budget outlined a number of measures aimed at providing financial relief and promoting growth among these businesses. Mr Hunt announced these proposals, which reflect the government’s strategy to bolster economic growth by empowering SMEs and recognising their crucial role in the UK.
The Recovery Loan Scheme has been renamed as the Growth Guarantee Scheme and extended until the end of March 2026. The scheme offers a 70% government guarantee on loans to SMEs of up to £2 million in Great Britain, and £1 million in Northern Ireland.
HMRC has published new guidance around the tax deductibility of training costs for sole traders and the self-employed. This guidance ensures that updating existing skills, and maintaining pace with technological advancements and changes in industry practices, are allowable costs when calculating taxable profits.
The government will increase the VAT registration threshold from £85,000 to £90,000, and the deregistration threshold from £83,000 to £88,000, freezing them at these levels. These changes will apply from 1 April 2024.
The government will legislate to reinstate the previous eligibility criteria to qualify as a high net-worth or sophisticated investor. The government will carry out further work to review the scope of the exemptions.
Download our full budget guide
THIS ARTICLE REPRESENTS THE VIEWS OF THE ADVISER AND DOES NOT CONSTITUTE AS FINANCIAL ADVICE.
Chancellor Jeremy Hunt confirmed a cut in National Insurance Contributions (NICs) in the Spring Budget. The cut, widely trailed in advance of the Budget and applying from 6 April, will cost the Treasury approximately £10 billion a year.
Mr Hunt said this was a further cut worth over £10 billion a year for workers, following the government NICs cut for 29 million workers in the Autumn Statement 2023.
The government is cutting the main rate of employee Class 1 NICs by 2p from 10% to 8% from 6 April 2024. Combined with the 2p cut announced at Autumn Statement 2023, the Chancellor said this will save the average worker on £35,400 over £900 a year.
The government is also cutting a further 2p from the main rate of self-employed Class 4 NICs on top of the 1p cut announced at Autumn Statement 2023. This means that from 6 April 2024, the main rate for the self-employed will now be reduced from 9% to 6%. Combined with the abolition of the requirement to pay Class 2, the Chancellor announced that this will save an average self-employed person on £28,000 around £650 a year.
The Chancellor commented that the combined effects of these reductions to NICs also mean that a person on the average wage now has the lowest effective personal tax rate since 1975.
The Office for Budget Responsibility (OBR) forecasts that, as a result of the reductions to NICs at the Spring Budget, total hours worked will increase by the equivalent of almost 100,000 full-time workers by 2028/29. Combined with the impact of the NICs cuts announced at the Autumn Statement 2023, the OBR expects that total hours worked will increase by the equivalent of around 200,000 full-time workers by 2028/29.
Download our full budget guide
THIS ARTICLE REPRESENTS THE VIEWS OF THE ADVISER AND DOES NOT CONSTITUTE AS FINANCIAL ADVICE.
