30/04/2024
Spring Budget 2024
It was clear that the Spring Budget was a budget focused on business investment initiatives with some measures to support members of the public. Although the budget may have been welcomed by many, there was however not much support directly offered to charities.
Although the budget may not have directly mentioned charities, there were some measures which will impact charities and their beneficiaries:
- Employee national insurance – the government has cut the main rate of National Insurance contributions for employees from 10% to 8%. The main rate of national insurance for the self-employed has reduce from 8% to 6% on Class 4 National Insurance contributions.
- VAT threshold: The VAT registration threshold for small businesses has increased to £90,000 (previously being £85,000), keeping many smaller charities from having to register for VAT.
There was concern that the new Digital Markets, Competition and Consumers Bill (which brings in protections for customers taking out digital subscriptions) would prevent charities from claiming gift aid on recurring charity memberships. However, amendments have been tabled to the Digital Markets, Competition and Consumers Bill allowing charities to continue to claim Gift Aid on subscription contracts, which could otherwise have been affected by the provisions in the Bill. Theatres, orchestras, museums and galleries will be given permanent higher rates of tax relief from 1 April 2025. These will be 40% for theatres, museums, and galleries, and 45% for all orchestra productions and other touring productions.
£45 million will be provided to medical charities through the Medical Research Charities Early Career Researchers Support Fund into medical research into diseases such as dementia, cancer and epilepsy,
including £3m for Cancer Research UK (CRUK). £5 million will be added to the Platinum Jubilee Village Halls Fund for local village halls across England.
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