Hosted at Sytner Jaguar Land Rover, 7 November 2024
Local business owners and entrepreneurs gathered at the Sytner Jaguar Land Rover showroom for a valuable Budget Breakfast event organised by the FSB in collaboration with the SBF and Azets on 7 November. The session, featuring a comprehensive presentation by Jemima Jones, Tax Partner at Azets, covered the key aspects of the UK Autumn Budget 2024 and its anticipated impact on small businesses.
Overview of Key Budget Changes for Small Businesses
The Autumn Budget 2024 introduced several important adjustments that will affect both business operations and individual finances. The presentation, attended by a range of local industry representatives, included insights into tax reforms, National Insurance Contributions (NIC) changes, and incentives for sustainable business practices.
Tax Updates and Implications
Jemima highlighted several notable tax changes, with particular emphasis on:
- Income Tax: The current income tax rates will remain unchanged, with no increases for the 2025/26 tax year.
- Capital Gains Tax (CGT): The CGT rate for basic-rate taxpayers has been increased from 10% to 18%, while the rate for higher-rate taxpayers and trustees has risen to 24%. Business owners considering asset disposals may wish to act sooner rather than later, as rates will continue to climb.
- Inheritance Tax (IHT): Important changes to Business Property Relief (BPR) and Agricultural Property Relief (APR) are set to come into effect in 2026, reducing the available relief for high-value assets. Business owners with significant assets should plan accordingly to mitigate the tax impact on their estates.
National Insurance Contributions and Employment Costs
One of the more impactful changes for employers is the increase in employer NIC rates, which will rise from 13.8% to 15% in April 2025. This change, combined with a reduction in the secondary threshold from £9,100 to £5,000, represents a significant additional cost for businesses. Jemima provided a breakdown of these increases, demonstrating that businesses with larger workforces may face considerable financial pressure if they do not take proactive steps to adjust.
The presentation also touched on National Minimum Wage increases from April 2025, with the minimum rate for those aged 21+ rising to £12.21 per hour. These changes emphasise the need for businesses to review employment costs and consider strategies to manage payroll effectively.
Sustainable Practices and Electric Vehicle Incentives
Encouraging sustainability, the budget continues to support tax breaks for electric vehicles. With the growing focus on eco-friendly practices, Jemima suggested businesses may benefit from switching to electric company cars, which enjoy advantageous tax treatments, including no benefit-in-kind charges for workplace charging and a 100% first-year allowance for new electric vehicle purchases.
Practical Advice for Local Business Owners
Throughout the session, Jemima offered practical tips to help business owners navigate these budget changes. She advised that companies explore Pension Salary Exchange schemes to reduce NIC expenses and recommended a careful review of staff benefits and compensation packages to remain competitive while controlling costs.
The event also included an engaging Q&A, allowing attendees to address specific concerns. Participants took advantage of the opportunity to network with peers and exchange insights on adapting to the new budgetary landscape.
Positive Feedback and Networking
The Budget Breakfast was well-received by attendees, who appreciated the clarity and relevance of the information presented. Many participants commented on the value of gathering expert guidance on the budget’s implications, particularly as they work to future-proof their businesses against rising costs.
For more information on SBF events and resources for small businesses, visit the SBF’s event page.