Autumn Budget 2024: What can small businesses expect? | 2-minute read
What is the Autumn Budget?
The Autumn Budget is an annual financial statement delivered by the UK Chancellor. It provides an overview of the government’s spending plans, revenue streams, and overall economic strategy for the coming year.
This year, Chancellor Rachel Reeves will deliver the Autumn Budget 2024 on 30 October. As the first budget from the Labour government in nearly 15 years, it is expected to signal a significant shift in the government’s approach to economic policy.
Many experts and commentators are already speculating about the focus areas for this year’s statement. Among the top predictions are potential tax reforms, changes to Capital Gains Tax, adjustments to inheritance tax, and alterations to pension policies.
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The Labour government has pledged to prioritise economic growth by supporting businesses. Additionally, it has committed to not raising taxes on working people, aligning with its manifesto promises.
Autumn Budget 2024 Predictions and Rumours
What can small businesses expect from this year’s budget? While much remains uncertain, some predictions and rumours are gaining traction. These include:
No Mainstream Tax Changes
Labour’s manifesto included a clear promise not to increase the basic, higher, or additional rates of income tax, National Insurance, or VAT. As a result, it is widely anticipated that Rachel Reeves will not introduce changes to these mainstream taxes in her first budget. This stability could provide businesses with some reassurance as they navigate economic challenges.
Increased Capital Gains Tax
There is speculation that the Labour government may increase Capital Gains Tax to bring it in line with Income Tax rates. This potential change could have a significant impact on business owners, particularly those planning to sell shares in their companies.
For example, aligning Capital Gains Tax with Income Tax could see rates increase by as much as 25%. Business owners considering selling assets or shares should factor this into their financial planning and consult with a trusted accountant for guidance.
Other Areas of Interest
While specific details remain unclear, there is ongoing speculation about possible reforms to inheritance tax thresholds and pension allowances. These areas could see changes aimed at boosting government revenues while maintaining fairness and equality in the tax system.
Why Should You Consider Outsourcing to an Accountant?
The Autumn Budget 2024 is expected to bring significant changes that could affect businesses of all sizes. If you own or manage a business, understanding these changes is essential to staying compliant and making the most of any new opportunities or relief measures.
By partnering with a local and trusted accountant, you can navigate new regulations with confidence. Accountants can help you adjust your financial strategy, optimise tax efficiency, and take advantage of any new incentives introduced in the budget.
A knowledgeable accountant will not only ensure your business remains compliant with HMRC regulations but also provide valuable insights into how the latest budget changes could impact your operations.
Why Choose React Accountancy?
At React Accountancy, we specialise in delivering practical, reliable, and value-for-money accounting services to our clients. Whether you’re a sole trader, small business, or larger organisation, we’re here to help you navigate the complexities of financial management.
With years of experience in the industry, we are experts in dealing with Companies House and ensuring full compliance with the latest regulations. We pride ourselves on offering a no-jargon approach to accounting, fostering open and honest relationships with all our clients.
From tradespeople to SMEs and everything in between, we understand the unique challenges businesses face. That’s why we offer a wide range of accounting services tailored to meet your needs.
Our Services Include:
– Tax planning and compliance
– Bookkeeping and payroll management
– Financial strategy and forecasting
– Assistance with VAT and Capital Gains Tax
To find out more about how we can support your business, get in touch with our expert team today.
Our Locations
We provide our services across the UK, including:
Manchester, Stockport, London, Birmingham, Cardiff, Bristol, Glasgow, Leeds, Nottingham, Leicester, Edinburgh, Sheffield, Bradford, Coventry, Liverpool, and Belfast.
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