Strategies to combat the budget
The recent UK Budget has certainly raised concerns for business owners. With increases in employer National Insurance contributions, a rise in the National Living Wage, and new corporate tax compliance requirements, it’s easy to see why you might be feeling the pressure.
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We’ve broken down the key budget updates and what they mean for your business:
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???? Minimum Wage Increase – Starting April 2025, the National Living Wage will rise to ￡12.21/hr for employees aged 21+ and ￡10/hr for those aged 18–20. This is a pivotal moment to evaluate how wage adjustments will impact your team dynamics, budgeting, and hiring strategies.
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???? Employer’s National Insurance Increase – Employer’s National Insurance rates will rise in April 2025, impacting payroll costs. Prepare by forecasting cash flow and streamlining expenses.
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???? Higher Capital Gains Tax Rates – With higher Capital Gains Tax rates effective from October 30, 2024, founders and business owners should consider the long-term implications for their financial planning.
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???? Expanded Employment Allowance – Increased to ￡10,500 and now more widely accessible without the ￡100,000 threshold, the expanded allowance provides an opportunity to offset rising NI costs and redirect resources toward growth initiatives.
Strategic Moves To Thrive Despite Budget
While the latest budget changes bring challenges, they also open up opportunities for growth and strategic planning.
By actively preparing and aligning your business with these updates, you can create a roadmap that not only adapts to the new financial landscape but also positions your company for future success.
With a forward-thinking approach, these budget changes can become a foundation for sustainable growth and a stronger, more resilient future for your business.
Decoding Deal Structures
The sale of a business involves more than just agreeing on a purchase price. The deal structure, or the way in which the transaction is structured, is a critical element that can significantly impact both the seller’s and the buyer’s financial outcomes.
We therefore wanted to shed some light on the most common types of deal structures and provide some insights into how business owners can select the right one based on their goals and circumstances.
3 Simple Reasons Why Successful Scale Up Entrepreneurs Seek Help
Our latest blog "3 Simple Reasons Why Successful Scale Up Entrepreneurs Seek Help" is out now and is the latest blog in our series all about the importance of FOCUS and more specifically, where successful entrepreneurs focus their time and resources.
Today’s blog concentrates on what sets the so-called gazelles or scale up entrepreneurs apart. Here is a snippet: As an ambitious entrepreneur that’s determined to scale your business, you already possess a high level of self-awareness. You’re already successful but almost certainly know that there are potentially still many things that you’ve not got previous experience of. Whilst you have proved adept at solving numerous challenges in the past, you’re perhaps mindful of the time it might take to figure out what’s next in the context of your ambitious growth plans. Consequently, you appreciate that the risks associated with getting it wrong could indeed be considerable and far-reaching for both you and your organisation.
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As always, if you have any questions please don't hesitate to get in touch with one of the team.
Best Wishes,?
The Team at Chalkhill Blue