The new Government had been in power for much longer than usual before delivering their first Budget. Chancellor of the Exchequer, Rachel Reeves, delivered her first budget at the end of October. She promised funding for programs aimed at “national renewal” and to fix a growing “black hole” in public finances. Here is our Autumn Budget 2024 summary.
The Budget was not as costly to SME’s as predicted but has still introduced some major tax increases. These changes include raising the Employers National Insurance rate from 13.8% to 15%. The threshold for payment has also dropped sharply to £5,000 from £9,100. Both of these measures will take effect from April 2025.
Other Autumn Budget 2024 Measures
- The National Minimum Wage rising in April 2025 to £12.21 per hour;
- A crackdown on tax avoidance schemes and promoters of tax avoidance methods;
- A freeze on fuel duty for the next year;
- Capital gains tax rises for both the lower rate (10% to 18%) and the higher rate (20% to 24%);
- Capital gains tax on commercial property is unchanged;
- Inheritance tax changes include a freeze to the threshold until 2030, and a new £1million cap for agricultural assets;
- Employment Allowance will increase from £5,000 to £10,500
- Corporation tax will remain at 25% for the duration of the Parliament;
- £1m Business Asset Disposal Relief to be retained (10%), but with an increasing rate from April 2025 to 14% and then from April 2026 to 18%
- VAT will now apply to private school fees, as well as their business rates removed;
- The Enterprise Investment Scheme is to be kept until 2035;
- Business rates, such as 40% on retail, hospitality and leisure sectors will continue in the 25/26 financial year up to a cap of £110,000.
If you are worried that these budget measures might impact your business, the J Sweeney team are here to help. We can discuss the potential impacts of these changes and can assist with forecasting any changes in costs.
Get in touch with J Sweeney Accountants on 01604 950034 or email us on [email protected]
