Spring Budget 2024: Key Takeaways for UK Small Businesses
The Chancellor’s recent Spring Budget 2024 brought a mix of welcome tax breaks and continued support for UK small businesses. Here at Margrave Financial Consulting, we’ve been dissecting the announcements and what they mean for you:
Tax Reliefs and Support:
- Lower National Insurance: The main rate of National Insurance for employees has been cut to 8% from April 2024. This translates to potential salary increases or reduced employer costs, freeing up resources for business growth.
- VAT Threshold Increase: The VAT registration threshold has risen to £90,000, meaning many smaller businesses can register for VAT once they have reached this amount. This simplifies your tax obligations and reduces administrative burdens.
- Fuel Duty Freeze: The fuel duty freeze has been extended for a further year. While not directly a business tax break, this helps control fuel costs, impacting transportation and logistics expenses for many businesses.
Looking Ahead:
- Investment in Creative Industries: Over £1 billion of new tax reliefs for the UK’s creative industries were announced. If your business falls within this sector, explore these reliefs to potentially reduce your tax bill.
- Changes to the “Non-Dom” Regime: The government plans to replace the non-domiciled tax regime with a residence-based system by April 2025. This may have implications for businesses with international connections.
We’re Here to Help You Navigate the Changes
Understanding how the budget announcements impact your specific business situation can be complex. At Margrave Financial Consulting our team of experienced consultants are here to:
- Analyse your financial statements to identify areas where you can benefit from the new tax reliefs.
- Help you adapt your accounting practices to comply with any upcoming changes.
- Provide ongoing tax and financial advice to ensure your business thrives in the current economic climate.
Don’t wait to get a head start! Contact us today for a free consultation to discuss your specific needs and how we can help you take advantage of the opportunities presented in the Spring Budget 2024.
