Key Takeaways from Autumn 2024 Budget
What the Autumn 2024 Budget Means for You
The Autumn 2024 Budget was unveiled with a focus on addressing the cost-of-living crisis, supporting businesses, and boosting economic recovery. Whether you're a business owner or an individual taxpayer, these announcements are likely to affect your finances in the coming year.
At AWS Accountants, we've broken down the key measures introduced in this year's budget to help you understand what's changing and how to prepare.
Key Changes in the Autumn 2024 Budget
Tax Adjustments
The Chancellor announced several tax changes aimed at balancing the nation's books while supporting growth:
Capital Gains Tax Exemption:
The annual exemption has been reduced to £3,000, impacting individuals selling assets such as property or shares.
Employers National Insurance rate
From April 2025, Employer National Insurance Contributions will increase to 15%, but the earnings threshold for payments will rise from £9,100 to £12,570, reducing the impact on lower-paid employees.
Energy Support Measures
With energy prices remaining high, the budget includes measures to help both businesses and households:
- A continuation of energy price guarantees for households through winter.
- Tax incentives for businesses investing in renewable energy and energy efficiency.
Business Investment Incentives
To drive growth, the budget introduces:
- Full Expensing Extended: The scheme allowing businesses to deduct the full cost of qualifying capital investments from profits has been extended for another three years.
- R&D Tax Credit Expansion: Enhanced tax credits for small and medium-sized businesses investing in research and development.
Support for Self-Employed Workers
Acknowledging the challenges faced by freelancers and contractors, the government announced:
- Simplified tax filing requirements for sole traders with annual incomes below £50,000.
- A commitment to review the impact of IR35 regulations on off-payroll workers.
How These Changes Could Impact You
The Autumn 2024 Budget brings both opportunities and challenges. While businesses may benefit from investment incentives and reliefs, individuals selling assets will need to be mindful of the reduced CGT exemption.
How AWS Accountants Can Help
Navigating the changes introduced in the Autumn Budget can feel overwhelming, but AWS Accountants is here to help. We specialise in providing personalised advice for:
- Adapting your business plans to take advantage of new incentives.
- Managing tax planning effectively to minimise liabilities.
- Supporting self-employed individuals and contractors in understanding regulatory changes.
Contact us today to discuss your needs and let us help you make the most of the opportunities presented in this year's budget.