UK Autumn Budget 2024

The UK 2024 Autumn Budget, introduced by Chancellor Rachel Reeves, delivered a mix of policies directly impacting small businesses. It emphasizes fiscal stability and growth-oriented incentives while raising revenue through selective tax increases. Here’s an overview of what business owners can expect from this year’s budget.

Small businesses will see stability in key tax rates such as fuel duty, income tax, National Insurance, and VAT, which remain unchanged. However, some industry experts are concerned about "fiscal drag" from the freezing of personal tax thresholds, meaning that as inflation increases incomes, more business owners and employees will enter higher tax brackets over time.

While there was no rollback of recent corporation tax increases, there is a continued commitment to maintaining the basic rate at 19% for small firms, capped at 25%, though there are calls to further support small business owners by revising the marginal tax thresholds and expanding the £50,000 limit for lower rates.

The government have also announced a new COVID taskforce, creating more jobs for HMRC officers and allowing more time to be spent checking over false COVID-19 support given, along with bounce back loan fraud.

Below is a summary of the main tax and spending increases announced in the budget:

• Minimum Wage Increase

  • New rates apply from April 2025

    • 21+ - £12.21 per hour (6.7% increase)

    • 18 - 20 - £10 per hour (16.3% increase)

    • Apprentice - £7.55 per hour (18% increase)

• Employers National Insurance

  • New rates apply from April 2025

    • Increased from 13.8% to 15%.

    • Employment Allowance increased from £5,000 to £10,500

    • Starting threshold reduced from £9,100 to £5,000.

  • Speak to us about using our calculator to see how this will affect you.

• Capital Gains Tax

  • New rates apply from 31/10/2024

    • Main Capital Gains Tax rates have changed to match the residential property rates

    • 18% lower rate

    • 24% higher rate

• Inheritance Tax

  • From 6th April 2026

    • The first £1 million of combines business and agricultural assets will continue to attract no IHT. Assets above this threshold will have IHT applied with 50% releif (a 20% effective tax rate).

  • From 2027

    • Pensions will no longer be free from inheritance tax

• Business Asset Disposal Releif

  • From 2025

    • Increases to 14%

  • From 2026

    • Increases to 18%

• Stamp Duty

  • New rates apply from 31/10/2024

    • Stamp duty on a second property increased from 3% to 5%.

• Changes to the Treatment of Double Cab Pick-ups (DCPUs)

  • Changes Apply from 1st April 2025

    • Currently, Double Cab Pick-ups (DCPUs) which can carry more a payload of one tonne or more, are classified as plant and machinery, however, from 1st April 2025, any DCPU, regardless of payload, will be classified as a car, therefore changing the capital allowances and benefit in kind tax liabilities. The existing capital allowances treatment will apply to those who purchase DCPUs before April‌‌‌ 2025.

The UK autumn 2024 budget has marked some of the biggest changes to taxation in our generation. We will stay up to date with all changes and endevour to provide peace of mind to our clients, so you can focus on making your business successful!

Elevate Your Finances: Unleashing the Power of Accounting

In the dynamic world of business, the backbone of success often lies in meticulous financial management. For entrepreneurs, startups, and established companies alike, partnering with the right accountancy business is the key to unlocking a pathway to financial excellence. Join us on a journey to discover how Linguards stands out as the catalyst for transforming your financial landscape.

• Tailored Solutions for Every Business:

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• Transparent Communication:

We believe that effective communication is the cornerstone of a successful client-accountant relationship. At Linguards, transparency is more than a buzzword – it's a commitment! We keep you informed every step of the way, ensuring that you have a clear understanding of your financial standing and are equipped to make informed decisions.

• Compliance and Security:

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In the intricate dance of business, financial management is your secret weapon. At Linguards, we invite you to unleash the power of precision, expertise, and personalized service. Elevate your finances, propel your business forward, and embark on a journey of sustainable financial success with. Contact us today and let's chart a course to prosperity together!

UK Autumn Budget 2023

As the leaves fall and the temperature drops, the UK government releases its Autumn Statement, outlining the economic roadmap for the upcoming fiscal year. For small businesses, staying informed about the changes announced in the Autumn Statement is crucial for effective financial planning and compliance. In this blog post, we'll delve into key highlights from the 2023 UK Autumn Statement and explore the implications for business owners and self-employed individuals.

What was Included?

The Autumn Statement typically brings forth changes in taxation policies, affecting businesses of all sizes. This year, the Chancellor has decided to cut national insurance paid by workers and the self-employed. Furthermore, the government have increased the legal minimum wage to £11.44 from April 2024. An increase of 9.8%.

The government have also agreed to increase benefit payments in line with inflation, however, the rules for some claimants are being tightened to incentivise people back into work. The state pension will be increased by 8.5% next year, in line with average earnings.

The Chancellor revealed that full expensing will be made permanent for businesses, allowing them to fully offset investment in equpment and machinery against corporation tax. In addition, business rate releif will be extended to and welcomed by many small businesses.

How does this affect me?

Regardless of the size of your business, whether you are self-employed or running a limited company, the budget will likely have some effect on your business. We have summarised some of the key points below:

• National Insurance Cuts

  The main rate for employees will be cut from 12% to 10% from 6 January.

  It is currently charged at 12% on earnings between £12,571 and £50,271 - and 2% on anything above that.

  Abolishment of NI for self-employed people earning more than £12,570 from April, with 8% to be paid on profits between £12,570 and £50,270 - a 1% cut

• Increase to Minimum Wage

  Legal minimum wage - known officially as the National Living Wage - to increase from £10.42 to £11.44 an hour from April. The government have also extended this to 21-22 year old workers.

• Business Rates and Expenses

  "Full expensing" tax break - allowing companies to deduct spending on new machinery and equipment from profits - made permanent

  The 75% business rates discount for retail, hospitality and leisure firms extended for another year