HMRC facts that could benefit you in 2024
Key HMRC rate changes & information for 2024
- There has been a cut in National Insurance Contributions starting in 2024 – If you are employed and a basic rate taxpayer, you will pay national insurance at a rate of 10% from 6th January 2024, down from 12%. This will save the average employee £450 a year, according to the Treasury. If you work for yourself, you will pay 8% from 6 April 2024, down from 9%.
- HMRC is now checking how much money online traders are now making on selling items online – As of 1st January 2024, online marketplaces such as eBay, Etsy, and Vinted are now required to report how much income sellers are making to HMRC to see if it correlates with people’s tax returns they have submitted. (This only applies if you buy to resell or make to sell, it does not include anything that is your own property that you are selling to get rid of)
- VAT on period pants has been scrapped – As of 1st January 2024, women will save up to £2 on a £12 pair of period pants as the government scraps VAT on the underwear. This follows the end of the tampon tax in January 2021.
- Child benefit is now online for new parents – Child benefit was first launched 47 years ago and up until recently, you had to fill out a paper form, post it, and wait up to 16 weeks for the first payment. Now there is an online claim form available on the HMRC website for new parents which takes approximately 10 minutes to fill in and could see the first payment made within three days.
- 2023/2024 will be the transition year for Basis Period Reform – In your next tax return (year ending 2023/2024) you will be taxed on the profits from BOTH this year AND the remaining months from the date of your trading year end up to 5th April 2024. If your TRADING year is the same as the TAX year, then there is no change. Read more on Basis Period Reform
- The State Pension increases by 8.5% from April 2024 -The full basic state pension will increase by £13.30 a week to £169.50. The full new state pension will increase by £17.35 a week to £221.20
- The National Living Wage/National Minimum Wage increases from April 2024 – for 21 years and over it rises to £11.44 (from £10.18), for 18-20 year-olds to £8.60 (from £7.49), for under 18s to £6.40 (from £5.28), and to £6.40 (from £5.28) for apprentices. Read more from HMRC on the National Living Wage & National Minimum Wage.
