The anticipation of the budget is now behind us, and as we decipher and work out what that means for businesses, as well as ours – it’s important to help each other through potential tricky times. I read a post, ahead of the budget from Nova highlighting that 86% of businesses within the Chamber are Small and Midsize Enterprises (SME’s) and the budget applies to a large proportion of us members.
Nobody likes a spreadsheet, so following the budget, we will factor what this means into our own forecasts via cutting-edge software to see what impact the changes have on our own business, as well as our client’s businesses in real-time. You could be manifesting devastation regarding your business affairs, when in reality, you can manage it. Or, you could feel that your business will get through the next year of trade, when it may not be as plain sailing.
Key facts:
-The National Minimum Wage will increase by 6.7% to £12.21 for a worker over 21. National Minimum Wage will increase for workers aged between 18 and 20-years old from £8.60 to £10.
– The lower rate of capital gains tax (CGT) will be increased to 18%, and the higher rate will increase to 24% from 30/10/24. CGT rates on residential property will be maintained.
– Employers NIC will be increased to 15% from April 2025. The secondary threshold will be reduced to £5k.
– Employment allowance will be increased to £10.5k from April 2025.
– Effective from 31 Oct 2024, there will be an increase in the Stamp duty land tax surcharge on second homes by 2% to 5%.
– Inheritance tax (IHT) threshold freeze will be extended until 2030. Inherited pensions will be brought into IHT from April 2027, with reforms on Agricultural Property Relief and Business Property Relief. From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.
Have you got a forecast to see the impact of the budget on your business? Does your current accountant have your business interests close to their heart to assist with big decisions like the budget? If not, JHW can help.
