As the UK government prepares to unveil the Autumn Budget 2024, small businesses are watching closely for potential changes that could impact their finances and operations. While the full details have yet to be confirmed, there are key areas where small business owners can start preparing to ensure they’re ready for any adjustments that come into play.
At Cutts & Co Accountancy, we’re keeping a close eye on these developments. Here’s what small business owners should keep in mind as they await the budget announcement.
1. Possible Adjustments to Corporation Tax
There is speculation that changes to corporation tax rates could be on the horizon, particularly affecting businesses with profits under £250,000. Small businesses should be prepared for adjustments that may influence their tax bills in the coming year.
What to do now: Consider reviewing your current corporate structure and profit forecasts. Preparing ahead of time can ensure you’re optimising your tax position, regardless of the upcoming changes.
2. Incentives for Green Investments
With growing focus on sustainability, it’s expected that the government will introduce more incentives for businesses investing in green technologies. This could include enhanced tax reliefs for those making eco-friendly upgrades to their operations, from energy-efficient machinery to sustainable materials.
Pro Tip: Even before the budget is confirmed, it’s worth exploring opportunities for greener business practices that could not only reduce your environmental impact but also provide potential tax savings.
3. Potential VAT Simplifications
While no firm announcements have been made, there is speculation that VAT simplifications could be introduced to ease the burden on small businesses. If your turnover is nearing the £85,000 VAT threshold, it might be time to consider whether voluntary registration could benefit you under any forthcoming changes.
4. Support for Small Business Growth
Historically, the government has used budgets to introduce grants and funding schemes aimed at supporting small business growth. While the specifics are yet to be revealed, it’s possible that new measures will be introduced to help businesses expand through investment in digital infrastructure, training, or innovation.
5. Prepare for Uncertainty
Given the potential scope of changes, the best approach for small business owners is to stay flexible and informed. It’s always a good idea to revisit your financial plans and consult with your accountant about how best to navigate possible budget changes.
At Cutts & Co Accountancy, we’re ready to help small businesses adapt to whatever changes may come from the 2024 Autumn Budget. Whether you need assistance with tax planning, VAT, or maximising relief opportunities, our expert team is here to guide you through it all.
