Hello, business owners! Let’s talk about what the UK Autumn Statement means for you in plain English, with all the important bits you need to know:
Our director Paul breaks down the Autumn budget with a quick synopsis
Cash Cushion for Growth
The government has a safety net of funds aimed at supporting businesses making sure they can grow. They’ve introduced 110 measures to help businesses with things like productivity and taxes. This is collated in a 120 document you can click here to read.
Drinks on Hold
If you’re in the business of selling drinks, there’s good news – no tax hike on alcohol until August 2024. Cigarette sellers, however, will see a 10% tax increase on hand-rolling tobacco.
Friendly Rates for Small Businesses
If your business is on the smaller side, you’ll be glad to hear that your business rates won’t go up this year. And if you’re in retail, hospitality, or leisure, you’ll continue to enjoy a significant reduction in business rates.
Full Speed on Spending
When you buy equipment for your business, you can now get a tax break for the full price from now on. This should make investing in your business a bit more attractive.
Simpler Tax Breaks for Innovation
If your business invests in research and development, things are getting simpler. The government is merging two tax relief schemes into one, making it easier to understand and claim your benefits.
Cheer for Creative Types
For the creatives making films, TV shows, or games, there’s a new tax credit system starting in 2024 that may put some extra cashback in your pocket. We are awaiting the details on this one!
National Insurance Cuts
Big news for both employees and the self-employed: National Insurance is getting cheaper. Employees will see a 2% cut from their National Insurance rates, and for the self-employed, Class 4 NI goes down by 1% to 8%. Plus, a certain type of National Insurance payment, known as Class 2, will be abolished, making tax a bit simpler for the self-employed.
More Money in Your Pocket
With all these changes, if you’re earning an average salary, your taxes will be lower in the UK than in many other major economies. This means more take-home pay for millions of workers.
Minimum Wage Jump
Last but certainly not least, if you’re paying your staff minimum wage, note that it’s going up to £11.44 from April 2024. This is a significant raise, which means those earning the minimum will take home more money but it also could be a huge change for your business. Making it more important than ever to plan!
Listen to Paul talking about the impact on small businesses by watching this video.
Remember, all these changes are about making sure that work pays off more and that your business can thrive. It’s always a good idea to chat with an accountant to see exactly how these changes affect your specific business. Stay informed and keep growing!
Please check out our social media for more videos breaking down the budget!
