How the 2024 Budget Affects Your Business

RESTORING ECONOMIC STABILITY & INCREASING INVESTMENT

 

Making sense of the budget and what this means for your business. How the 2024 Budget Affects Your Business. We have highlighted as below:

 

Increase in Employment Allowance
To help smaller businesses, the Employment Allowance will increase from £5,000 to £10,500, meaning 865,000 employers won’t pay any National Insurance. This will allow them to retain more of their earnings and reinvest in growth.

 

Fuel Duty Frozen for Next Year
Fuel Duty will also freeze and maintain the existing 5p cut for another year. There will be no higher taxes on petrol pumps next year.

 

Draft Alcohol Duty Cut
For businesses involved in the production or sale of draft alcohol, products below 8.5% ABV will receive a reduction in alcohol duty by 1.7%.

 

Employer’s National Insurance to rise to 15%
National Insurance contributions will rise from 13.8%, and the threshold at which businesses start paying NI on workers’ earnings will also be lowered from £9,100 to £5,000.

 

Business Rates Updated
The current 75% discount to business rates, due to expire in April 2025, will be replaced by a 40% discount up to a maximum discount of £110k.

 

Additional Changes:

• “Non-dom” tax system will be abolished
• National Minimum Wage to rise by 6.7%
• No increases to rates of Income Tax, National Insurance or VAT for working people
• Stamp duty rising from 2% to 5% for people buying more than one dwelling.
• Spending on state pension is projected to rise 4.1% in 2025-26
• Inheritance Tax threshold freeze extended to 2030
• Government to invest £5bn for house building

 

Call now to see how we can help 01634 386869. Similarly, See The Businesses we have Insured recently. For more details and regular updates, you can explore our social media.