Remember the 2023 Autumn Statement? It may feel like a distant memory amidst the busy day-to-day running of your business, but many of the announcements have now come into play. And with more changes from the statement set to become active from April, this time of year serves as the ideal middle ground to align your business to the changes and prepare for what’s to come.
Keep reading to get up to speed on the changes that could affect your business.
New year changes in effect
The following changes occurred in January 2024 – adapt your processes if you haven’t already:
National Insurance tax cut
Effective from 6th January 2024, the rate for employees was cut from 12% to 10%, meaning that someone on your team with an average salary of £35,400 will gain an extra £450 a year. If you’re self-employed, this doesn’t affect you directly – but support is coming your way in April with the abolishment of Class 2 National Insurance Contributions and the cutting of Class 4 National Insurance by 1% to 8%.
Business rates relief
Effective for 2024/25,the small business multiplier for properties with a value of less than £50,999 is frozen for another year. And there’s more good news for retail, hospitality and leisure businesses, with the 75% discount on business rates up to £110,000 also extended for another year – a win for small businesses that own premises.
Full expensing made permanent
From January 2024 onwards, the government will hold meetings with stakeholders to discuss wider changes to the capital allowances legislation. Meanwhile, incorporated businesses can now deduct the entire cost of qualifying assets in the year of purchase on a permanent basis (previously capped at three years), providing valuable tax relief.
Prepare for April with Nabarro Poole
The following changes from November’s announcement will come into effect at the turn of the financial year in April:
- National minimum wage increase
- Further business investment for innovative industries
- Simplified research and development tax relief
- Late payment crackdown for companies bidding for large government contracts, also affecting the smaller businesses and sub-contractors they rely on
Now is the time to understand how these could affect your business and how you can mitigate or maximise the changes. Whether it’s updating your budget and payroll, recalculating your forecasts, or refreshing your tax plan, Nabarro Poole provides a spectrum of services designed to help your business get ahead and grow through changing legislation.
See how our friendly professionals can help by getting in touch today.
Recent Comments