Budget autumn 2024: What’s in it for SMEs?

As we head towards this Labour government’s first autumn Budget, many are braced for tax changes and other measures that will be ‘painful’ according to the new government.

However, always keen to seek out the good news, we wanted to look at what might be announced at the Despatch box on 30th October, and positives there might be for SMEs.

Corporation Tax freeze

Corporation Tax (CT) is expected to be frozen at 25%. 

Full expensing

CT is expected to retain full expensing capital allowances. This allows companies across the UK to write off the full cost of qualifying plant and machinery investment in the year they invest, effective from April 1, 2023 to March 31, 2026.

Tax avoidance / fraud measures

There may be changes to administrative processes that aim to reduce mistakes and remove the opportunity for fraudulent behaviour, for example the consultation on E-invoicing for VAT that has already been announced and will be published in the budget.

Replacement of business rates

A timeline for this may be announced, which would be enormously useful for business owner.

Focus on devolution

The Labour manifesto pledged more devolution of powers to local authorities, city mayors and regional bodies, which might be beneficial to SMEs if the actions taken support the manifesto promise to create a tax that “will level the playing field between the high street and online giants”.

Incentives for green investments

Given the new government’s focus on climate targets, we might see more incentives for businesses investing in the green economy, e.g. renewable energy.

Labour’s manifesto also promised that a Business tax roadmap would be published within six months of the election. While not all the stages in that roadmap are likely to be wholly positive for SMEs, the fact that there is a roadmap will enable businesses to plan accordingly.

The Budget will be broadcast live on the BBC at around 12:30 pm Wednesday 30th October, and streamed on ParliamentTV.

Whatever is published in the next budget, Bathgate Business Finance is here to help you plan for growth and address challenges, such as cashflow and HMRC deadlines. 

To speak to one of the team contact proposals@bathgatebf.co.uk or call 0151 625 7323

Image credit: By HM Treasury, Wikimedia Commons