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Stratford-upon-Avon

13 The Courtyard
Timothy's Bridge Road
Stratford-Upon-Avon
Warwickshire CV37 9NP

01789 294484

enquiries@gjassociates.co.uk

London

7-8 Stratford Place
Mayfair
London
W1C 1AY

0207 495 0304

enquiries@gjassociates.co.uk

As the seasons change, staying informed about financial updates is crucial for businesses. At Grenfell James, we’re dedicated to keeping you in the know. Today, we’re pleased to share a concise summary of the Spring Budget 2024, expertly crafted by our Senior Client Manager, Helen Gill.

Helen’s experience and attention to detail mean you’ll get clear insights into how the Spring Budget impacts you. This summary breaks down complex information from tax changes to financial policies into easy-to-understand points.

Let’s examine Helen’s key takeaways, which will give you the knowledge you need to navigate the financial landscape confidently.

Spring Budget 2024 Highlights

1. Reduction in Class 4 National Insurance Tax Rates for Self-Employed Individuals:

2. Reduction in Employee National Insurance Rates:

3. Increase in High-Income Child Benefit Tax Charge Threshold:

4. Abolishment of Tax Relief for Furnished Holiday Lets:

5. Increase in VAT Registration Threshold:

6. Reduction in Capital Gains Tax Rates on Residential Property for Higher Rate Taxpayers:

7. Abolishment of Stamp Duty Multiple Dwellings Relief:

8. Extension of Full Expensing Rules for Capital Allowances:

We encourage you to explore the Spring Budget 2024 in full for a comprehensive understanding. You can view it on www.gov.uk here.


At Grenfell James, we understand the importance of these changes and their impact on your business. If you’re a small business owner seeking guidance on navigating these developments, our team is here to help. Reach out today to explore how we can simplify and revolutionise your business.

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As we approach the Spring Budget announcement for 2023, there is renewed hope for small business owners across the UK. Here we explore what the upcoming reports may mean for small businesses in the UK and share our Spring Budget Wish List.

With better-than-expected self-assessment tax receipts and falling wholesale energy prices, the government has reported a small fiscal surplus of £5bn in January, reducing the year-to-date deficit to £117bn, which is £7bn more than the comparative period in the previous financial year.

Furthermore, the lower-than-expected spending on the UK energy support scheme has resulted in less borrowing than forecasted by the OBR in November.

Against this backdrop, small business owners hope the Chancellor will use the Spring Budget to announce measures to support their businesses further and help strengthen the UK economy. But can the Spring Budget boost the UK economy?

Spring Budget Wish List: Expectations and Predictions

The Chancellor is facing pressure to announce measures that could stimulate growth, such as potential cuts to corporation tax and an extension of the super-deduction scheme for new plant and machinery investment.

The government’s focus on reducing inflation continues, but additional surprises may happen on March 15th. For example, one issue the Chancellor may address is the high number of workers over 50 wanting to retire early, particularly in the medical profession. One possible solution could be raising the current cap on pension savings, currently set at £1,073,100.

Spring Budget Wish List for a Stronger UK Economy!

Scrapping the Corporation Tax Increase

The upcoming Spring Budget has many small business owners concerned about the potential impact of the corporation tax increase, set to rise to 25% for businesses with profits over £250,000. Some companies, such as AstraZeneca, have already cited discouraging tax rates in their decision to open new facilities in countries with more favourable tax regimes, such as Ireland.

Our Spring Budget Wish List includes scrapping the corporation tax increase and providing a roadmap for gradually reducing the rate over the next five years. This move would give a positive signal to businesses and boost confidence in the UK economy. It is unlikely that the rate increase will be scrapped entirely. Still, we hope the Chancellor will consider alternative measures, such as adjusting the tapering and bands, to help support small businesses.

Reverse the Planned Dividend Tax Increases

The planned increases in dividend tax are causing concern for small and medium-sized enterprises (SMEs) in the UK. Many OMBs (Owner Managed Businesses) structure their remuneration through a dividend/salary structure, and this increase will only add to their already heavy burden.

Our Spring Budget Wish List includes reversing the planned dividend tax increases to support the survival of UK SMEs. Doing so would help alleviate the financial strain on these critical contributors to the UK economy. We hope the Chancellor will consider this measure to ensure a more prosperous business environment in the UK.

Postpone Fuel Tax Rise

Small business owners across the UK face increasing challenges in the wake of the COVID-19 pandemic. To help support these entrepreneurs and their companies, we suggest postponing the planned rise in fuel tax. This would provide much-needed relief for SMEs that rely on transportation for their operations, such as haulage companies, delivery services, and tradespeople. Delaying the fuel tax rise would help these businesses stay afloat and contribute to the UK’s economic recovery. We urge the Chancellor to consider this measure part of his Spring Budget to support small business owners during difficult times.

Extend Energy Support to Help with Rising Costs

Small businesses are struggling to cope with skyrocketing energy costs, and the situation is set to worsen from April, when the support will become significantly less generous. This could force high-energy use businesses to review their options and may even lead to job losses. To help these businesses weather this storm, we suggest extending the energy support level in the upcoming Spring Budget. This would provide critical relief for SMEs already stretched to their limits and allow them to continue operating effectively. We urge the Chancellor to consider this measure to support small businesses and safeguard jobs in the UK.

Can the Chancellor Deliver on our Spring Budget Wish List?

Overall, Spring Budget predictions have small business owners across the UK hoping for measures to instil confidence, drive economic growth, and create job opportunities. As the Chancellor of the Exchequer prepares to announce the latest fiscal and monetary measures, there are calls for support that will help small businesses stay afloat during these uncertain times. From reversing the planned increase in dividend tax and postponing the fuel tax rise to extending energy support, some measures can be taken to help small businesses succeed.

We look forward to seeing what the Chancellor has in store for the UK economy and if it will deliver on our Spring Budget Wish List!

If you are a small business owner in the UK looking for guidance on navigating the Spring Budget announcements, the team at Grenfell James is here to help. Get in touch today to discover how we can revolutionise and simplify your business.

Grenfell James Technology Adoption Index

How does your business perform against others adopting financial tech? Find out with our interactive diagnostic:

1.

How does your business receive invoices?

A)

Invoices are mainly received in paper form

B)

Invoices are mainly received by email

C)

Invoices are emailed then automatically forwarded to a designated mailbox

2.

How are purchase invoices processed?

A)

Invoices are entered manually

B)

Invoices are attached to manually raised invoices

C)

Automated software (e.g. ReceiptBank, 1Tap, HubDoc etc) collates invoices

3.

How are accounts processed?

A)

Using Excel/paper-based

B)

Using Computer-based, offline software

C)

Using cloud-based accountancy software

4.

How often is business data revised?

A)

Data is updated annually

B)

Data is updated quarterly

C)

Data is updated monthly or more often

5.

How is banking updated for your business?

A)

Banking is updated manually

B)

Banking is updated by imports

C)

Banking is updated via a live feed

6.

How are bank payments made?

A)

Bank payments are manual

B)

Bank payments are made using bulk imports

C)

Bank payments are made directly via accounting software

7.

How are bank receipts reconciled?

A)

Receipts are chased and reconciled manually

B)

Receipts are chased and reconciled automatically

C)

A third-party platform is used to chase debts and collect fees

8.

How often are management reports produced?

A)

No reports are provided

B)

Reports are provided but often too late to be valuable

C)

Reports are automated with real-time information

Score 8-12:

Curious Exploration

Your financial technology phase is Curious Exploration

% of respondent businesses are in this phase too.

Switching accountancy systems may seem like an upheaval, but can be much more straightforward than most businesses imagine. From talking to our clients, they have found moving from paper invoicing and desktop-based accounting software to the cloud and apps quickly makes the transition process a worthwhile investment of time. Digital accounting solutions bring in streamlined processes, up-to-date business data and greater confidence in the accuracy of information when making financial decisions.

Grenfell James works with your team to fully assess the needs of your business and minimise the impact of any transitions for solutions we recommend.

Find out more about App Advisory

More

Score 13-19:

Measured Discovery

Your financial technology phase is Measured Discovery

% of respondent businesses are in this phase too.

Once cloud accountancy software is in place, there’s still plenty of scope to improve your accountancy processes and make sure your business is maximising the benefits of adopting a digital accounting solution. Grenfell James assesses each business to understand how any implemented solutions are being used, identify areas for improvement and the needs of the business overall to support your business goals and achieve success.

Our team of experts can discuss a range of time-saving automation and get different apps and cloud-based solutions talking to create and manage a digital accountancy eco-system to help your business grow.

Find out more about App Advisory

More

Score 20-24:

Bold Innovation

Your financial technology phase is Bold Innovation

% of respondent businesses are in this phase too.

You know the benefits of accounting technology and the impact it can have on your business goals. If you want to take it a step further, our team can conduct a systematic review of your processes, apps and business goals to ensure your digital accountancy ecosystem is keeping pace with the changing needs of a growing business.