The Chancellor of the Exchequer has released her financial statement. She has committed to maintain the Bank of England’s 2% target for inflation. Below, we’re highlighting the key Autumn Budget updates that may impact you as a business and offer our support to anyone that may need it.
NI Contributions by Employers Increase by 1.2%
While we awaited news on a potential National Insurance Contribution increase for employers, we’re relieved that the rise is a relatively modest 1.2%, bringing the rate to 15%. Many had predicted a more substantial increase. Overall, we’re taking this as good news, with a smaller increase in financial commitments than anticipated for our business and yours. Plus, there’s some good news in regard to Employment Allowance, read on for more!
Employment Allowance Increased to £10,500
Despite the increase in National Insurance contributions, there are ways you can reduce your NI liability. The Chancellor announced that the Employment Allowance has been increased from £5,000 to £10,500, explaining this means around 1 million employers will pay the same or less National Insurance than they did previously, with the ability to employ 4 workers on Minimum Wage before they pay any NI. If like us your workforce is growing, we hope you’ll reap the benefits of this increased allowance.
Fuel Duty Remains Frozen
As specialists in the Logistics and Haulage industry, we join all our customers in breathing an enormous sigh of relief as the Budget announced that Fuel Duty remains frozen. After much speculation that the 5p cut would be scrapped at the same time as pushing duty up, we are relieved to hear that this was nothing more than speculation and Fuel Duty is frozen for another year.
40% Relief on Business Rates for Retail & Hospitality
The Chancellor has announced 40% relief on business rates for the retail, hospitality, and leisure sectors to help high streets and drive economic growth. Working closely with this industry and understanding the struggles they have faced; we are reassured to hear support remains in place to reduce pressure and free up finances for future investments.
Corporate Tax Roadmap
On positive news for businesses, alongside the Budget, the government have published a Corporate Tax Roadmap outlining their key Corporation Tax plans. With corporation tax capped at 25% for the entire parliamentary term, businesses can plan confidently for the future. The continued support for full expensing and the £1 million Annual Investment Allowance will fuel investment, while retaining current R&D reliefs to drive innovation. These measures aim to encourage business expansion and create a solid foundation for future development. Read the full document here.
Stamp Duty Deals Ending
There’s no time like the present, so if you had some property purchases planned after March 2025 it may be beneficial to move this forward. The government are set to end the deals on Stamp Duty in March 2025, meaning it will once again be valid on property or land purchases over the previous rates of £125,000 or £300,000 for first time buyers. There is also a surcharge on 2nd homes to increase to 5%. Reach out if you need support with a Mortgage or Bridging Loan to bring your plans forward and avoid the Stamp Duty thresholds.
Draught Duty Cut by 1.7%
It’s always nice to end on a high! So, the Chancellor has announced a cut in draught duty by 1.7% – music to most of our ears whether you are in the brewery industry or not! When translated into financials, this saves around a penny off the price of a pint in the pub. Cheers to that!
If you’re worried about cash flow after the announcement of the Budget, reach out to us. We can walk you through a range of options to ease the pressure including Unsecured Business Loans to boost cash flow, Invoice Finance to get your Invoices paid faster, and Keyman Protection to ensure you retain valuable staff in your workforce.
Call us on 01908 92 62 62 to discuss your options or click here to schedule a call back with one of our specialists.