2024 Spring Budget Preview: What Small Businesses Need to Know

With Chancellor Rachel Reeves set to deliver her first Budget, businesses across Kent and beyond are bracing for potential changes. As specialists in supporting SMEs and startups, we've analyzed the expected announcements most likely to impact your business.

Critical Changes for Business Owners

The most significant expected change is an increase in employer's National Insurance contributions. Currently at 13.8%, rates could rise to as much as 15.8%. For a business with a £5m annual wage bill, this could mean an additional £51,500 in costs. Additionally, the threshold where employers start paying NICs might be lowered from its current £9,100 level.

Opportunities for Growth

It's not all about increased costs - the Budget is expected to introduce new opportunities, particularly for businesses investing in sustainability. New tax reliefs for green technology investments could provide significant advantages for forward-thinking companies. This might include enhanced capital allowances for renewable energy installations and energy-efficient improvements.

Tax System Improvements

Following widespread feedback from businesses and advisors, HMRC is expected to receive additional funding to improve its service levels. This should lead to faster response times and better support for small businesses managing their tax affairs.

What This Means for Your Business

While some changes may increase costs in the short term, there are also opportunities to strengthen your business position through strategic planning. Key actions to consider include:

• Reviewing your payroll structure ahead of potential NIC changes
• Exploring green technology investments to take advantage of new tax reliefs
• Planning for potential Capital Gains Tax changes if you're considering selling business assets

Next Steps

As your local accountancy partner in Gravesend, we're here to help you navigate these changes. Our team will analyse the Budget announcements in detail and provide practical guidance tailored to your business needs.

Need specific advice about how these changes might affect your business? Contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01474 619 990 for a consultation.