#AlexOnRisk - Budget 2024: Key Highlights Impacting Businesses and Employees

#AlexOnRisk - Budget 2024: Key Highlights Impacting Businesses and Employees

Staying updated on significant changes like the recent UK Budget is essential for businesses.

Not keeping abreast of such developments can pose a serious risk, as new regulations, tax rates and support measures directly affect operational costs and strategic planning.

The 2024 Budget announced by Chancellor Rachel Reeves introduces several key measures that will impact business owners, their employees and the broader economic landscape.


Business owners will be keenly reading the new Budget

Key Business Tax Changes

  • National Insurance Contributions: The threshold for employer National Insurance contributions will drop from £9,100 to £5,000, starting in April 2025. This change, combined with an increase in the contribution rate from 13.8% to 15%, is projected to raise £25 billion annually.
  • Capital Gains Tax (CGT): The lower rate of CGT will increase from 10% to 18%, while the higher rate will rise from 18% to 24%, including on the sale of residential property.
  • Corporation Tax Stability: The main rate of corporation tax for businesses with profits over £250,000 will remain at 25% until the next general election.
  • Private Equity Tax: The tax rate for private equity managers on successful deals will increase from 28% to 32%.

Employment and Wage Impacts

  • Minimum Wage Increase: The minimum wage for those over 21 will rise by 6.7% to £12.21 per hour from April.
  • Carers Allowance: The earnings threshold for Carers Allowance will rise, allowing more individuals to earn up to £10,000 while still receiving support.

Support for Education and Infrastructure

  • VAT on Private School Fees: Starting in January 2025, private school fees will incur VAT, and business rates relief for private schools will be removed.
  • Infrastructure Investments: The government has confirmed significant funding for public infrastructure, including the HS2 project.


Conclusion

The 2024 Budget introduces substantial changes that directly impact businesses, particularly through modifications in taxation and wage structures. While these adjustments may create challenges for business owners regarding increased costs and operational pressures, they also aim to support workers and households through higher wages and increased funding for public services.

To foster a more interactive dialogue, we invite our readers to share their thoughts.

How do you think these tax changes will affect your business operations? Are there specific measures in the budget that you believe could benefit your sector?

Opinions will vary, and the outcomes in the coming months and years will remain to be seen.

Disclaimer: The information presented in this article is for general informational purposes only and should not be considered financial or legal advice. The content reflects current events and data regarding the UK Budget 2024 as of its publication date. Readers are encouraged to consult with a qualified professional or financial advisor for specific guidance tailored to their individual circumstances and needs.


For further details on the budget, refer to the following sources:

#UKBudget2024 #BusinessNews #TaxChanges #NationalInsurance #MinimumWage #CapitalGainsTax #EmployeeBenefits #EconomicImpact #BusinessOwners #InfrastructureInvestment

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