As the spring of 2024 unfolds, the Government have unveiled their budget, setting the stage for economic policies, social initiatives, and infrastructure development for the upcoming fiscal year. This pivotal moment not only reflects current priorities but also shapes the nation in the months and years to come. In this blog, we delve into some of the top topics emerging from the spring 2024 budget and their potential implications.

National Insurance

The main topic for the budget was the cut in national insurance again. The chancellor reduced the amount of national insurance employees would pay by 2%. The rate going from 10% to 8% in April 2024. It is estimated that the cut would be worth about £450 a year for someone on a £35,000 full-time salary.

It is estimated that around 29 million workers are set to benefit from the change. The rate of 'class 4' national insurance contributions, which is the main rate paid on self-employed profits of between £12,570 and £50,270, will be cut from 9% to 6% from 6 April. This rate had been due to fall to 8% from 6 April, but the chancellor has taken it one step further today. The self-employed will benefit too as the rate is slashed from 9% to 6%.

Housing

The chancellor confirms plans to scrap the furnished holiday lets regime. The initiative gives tax reliefs on properties being rented out to holidaymakers and make renting out to holidaymakers more profitable than to long-term tenants. The move is expected to raise £300m a year for the Treasury, however a blow to furnished holiday lets owners.

The chancellor also announced the government will reduce the higher rate of property capital gains tax. This is a tax paid on the amount of gain when selling a property. Currently the rate is 28% for higher rate earners, but this is being reduced to 24%

Business and Investment

The VAT registration threshold will be increased from £85,000 to £90,000 from the start of April. This change is estimated to help tens of thousands of businesses.

Benefits and Income Support

The Household Support Fund, which helps people struggling with cost-of-living pressures and was due to close in four weeks' time, will continue for another six months.

Full child benefits to be paid to households where highest-earning parent earns up to £60,000 - the current limit is £50,000. The top of a taper to withdraw the benefit will be raised to £80,000 from £60,000 at the moment.

The chancellor also announces a consultation on child benefit rules, to apply it to collective household incomes rather than for individuals from April 2026.

If there is something you want to know more about, you can call us on 02920 653995 or

01656 530063 to discuss.

I see alot of business owners going into owning a business and under selling themselves.  

We all have different reasons for going into business.   You might be looking to be in charge of your own destiny.  You have a great idea that youve always wanted to pursue.  You lost your job and want to create your own or have a redundancy package that you want to re-invest.

Whatever your reason use these tips below as at the end of day,  if youre not making a profit your dreams and aspirations fall by the way side.

Protect Your Margin

Your margin should be enough that it not only covers the direct cost of your product or service materials and labour, but allows you to make a profit to cover overheads and leave a profit/ or income for yourself to grow and develop the company.

There is a market price for every kind of product or service, ie what your customers will pay for your product or service.  Stay ahead of the competition, know what they are doing, offer something different to stand yourself apart.

The margin itself

Costing your product or service is a vital project in itself. 

Be aware of the percentages your industry can attain.  If your in the food industry aim for a minimum of 3 x your costs, manufacturing products maybe lower between 60 and 100% depending on your product or market.

If you are making a product, Costs include
Materials, Labour, Energy

Keep this exercise in mind at regular intervals, at least every six months.  Energy and cost of materials do fluctuate, you need to be on top of that.

For the labour cost, time yourself making the product, as you get busier, look at ways of saving time.

Ie a machine might do the job faster than you, you might be able to buy in part of the process.

Manufacturing sites, keep a close eye on this with the use of computerised stock systems, using either FIFO or Standard Costing methods.  They see first hand any fluctuations, look into any big fluctuations, up or down.

You can also replicate this using a manual method .

Service Provider
Your service is likely to be mainly labour cost.

Experience and judgement always help when costing up a particular job.  But always keep an eye on the actual time it has taken to complete the exercise.  Keep timesheets at all times and for everything connected with that client.  You will be building up a record in order to raise the sales invoice, plus you will be staying up to date and applying realistic costs when quoting for work.

Cost savings

Save yourself cost of sale by buying direct from the Wholesaler, negotiating the prices.  More volume should equal better discounts.

Try and buy local where you can, your carriage costs could be saved.

Saving labour time, by knowing  your time elements to the job, using machinery where possible.  Time management.

Don’t price yourself too cheap.  Remember you need to be selling at a profit.

Offer added value and up sale marketing, to make higher margins.

Split your products up by margin, ie get the selling mix right, volume on lower margin, less of the higher margin.   

What constraints do you have
Do you have only limited capacity of manufacturing space, limited number of appointments available put day.  Put this into your budget, not just numbers.

If you can improve your margin to a realistic target, you will see the positive result on your bottom line, and hopefully in your pocket too.

Set yourself goals, you can always do better.  Keep that mind set, it’s a great planning tool.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own.  It is not intended to be used to make all of your business decisions but as a guide only.

We’re in the full swing of the Summer Holidays, as a business owner this can be a very busy time if youre in the food and leisure industry, it can also be a quieter time as many owners see because everything appears to be put on hold when suppliers and customers take time off and are on holiday.

How does Summer affect you? I see many business owners not taking time away from their business and carrying on regardless. Its important to have time away to recharge the batteries and to re-evaluate where you are going with it.

A lot of my clients are small micros businesses who might not have an army of staff to take care of things whilst theyre away. Heres a few tips they’ve shared with me on how they still manage to run their business but still take some important r & r.

Plan the diary around their holiday, do the bigger more important jobs in the run up to the holiday then plan the next jobs to be in the diary when they return.

Take small breaks so time away isn’t too dramatic and they don’t face backlogs coming back. Ie a long weekend away a couple of times a year.

Use a subcontractor to keep things ticking over until they come back.

Those companies with staff, leave clear instructions on what is to be done whilst theyre away.

Others leave the mobile phone on in case of emergencies but limit their workload reduced over the time period.

Whatever your business please take that rest time, you will read time and time again, those owners who take time away and have the rest are far more likely to succeed, than someone who never takes time away.

Work life balance is important to keep in the mind, we all like to think of ourselves as workaholics, and fully committed. Our health and wellbeing, and feeling motivated and energised is important too.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.

Theres been a lot of news coverage regarding the political parties getting ready and promoting their manifestos for the next election to encourage you to choose our next government.

Whichever party is your preference your destiny and your business success is completely in your own hands.

We have as accountants a short timeframe of seasonality before everything hots up again in April/May. We use this opportunity to look at our systems and see what we can do to improve our service to our clients and make efficiency savings, we have found it highly rewarding to see the changes over these last five years.

We also actively speak to our clients about changing their systems to make themselves more efficient to take their businesses to that next level of growth.

Ways that can be useful.

• Purchase higher specification software to make the service a lot more standardised.

• Look at the process itself and find ways of doing the same job for less time.

• Negotiating with suppliers for a greater discount, certainly if youre spending more on that product.

• Get to know the customer better so that you can tailor the service better

• Take out the human element, if a machine can do it cheaper use it, this will save a lot of cost on a volume product, and probably better too as you’ve taken away the potential for human error.

• Create a little production run, and run through it with your staff, can there be short cuts, or cut out duplication. Review it and make it smarter. Particularly good with the restaurant and pub industries as well as manufacturing.

• If youre wasting time doing the little things and not getting the bigger picture tasks dealt with, maybe you need a member of staff. Use someone cheaper than yourself so that you can concentrate on the improvement of your income.

• Outsource, if you either don’t have the time or the expertise, definitely look at this for marketing and finance particularly.

Larger companies have a lot of duplication in them, don’t let that be you, it’s the quickest way of increasing the costs.  If get yourself in this routine whilst your small, youll never suffer from large company syndrome and make more money than your counterparts.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.

Highlights Budget 2015

The Budget was announced last week, here is the edited version of the speech

This week we accept the recommendations of the Low Pay Commission that the National Minimum Wage should rise to £6.70 this autumn, on course for a minimum wage that will be over £8 by the end of the decade. We have already taken steps to curb the size of the very largest pension pots. But the gross cost of tax relief has continued to rise through this Parliament, up almost £4 billion. That is not sustainable.

So from next year, we will further reduce the Lifetime Allowance from £1.25 million to £1 million. This will save around £600 million a year. Fewer than 4% of pension savers currently approaching retirement will be affected. However, I want to ensure those still building up their pension pots are protected from inflation, so from 2018 we will index the Lifetime Allowance. We have had representations that we should also restrict the Annual Allowance for pensions and use the money to cut tuition fees.

I am also today amending corporation tax rules to prevent contrived loss arrangements. And we’ll no longer allow businesses to take account of foreign branches when reclaiming VAT on overheads – making the system simpler and fairer.

We will close loopholes to make sure Entrepreneurs Relief is only available to those selling genuine stakes in businesses. We will issue more accelerated payments notices to those who hold out from paying the tax that is owed. And we will stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence – while we protect those genuinely self-employed.

We’re giving more power to Wales. We’re working on a Cardiff city deal and we are opening negotiations on the Swansea Bay Tidal Lagoon. The Severn Crossings are a vital link for Wales. I can tell the House we will reduce the toll rates from 2018, and abolish the higher band for small vans and buses. It’s a boost for the drivers of white vans.

The legislation devolving corporation tax to Northern Ireland passed the House of Lords yesterday. We now urge all parties to commit to the Stormont House agreement, of which it was part.

Science and innovation

Our creative industries are already a huge contributor to the British economy – and today we make our TV and film tax credits more generous, expand our support for the video games industry and we launch our new tax credit for orchestras. Britain is a cultural centre of the world – and with these tax changes I’m determined we will stay in front. And we’ll invest in what is known as the Internet of Things. This is the next stage of the information revolution, connecting up everything from urban transport to medical devices to household appliances. So should – to use a ridiculous example – someone have two kitchens, they will be able to control both fridges from the same mobile phone. All these industries depend on fast broadband. We’ve transformed the digital infrastructure of Britain over the last five years. Over 80% of the population have access to superfast broadband and there are 6 million customers of 4G that our action made possible.

Small business

In two weeks’ time, we will cut corporation tax to 20%, one of the lowest rates of any major economy in the world. This April we will abolish National Insurance for employing under 21s; Next April we will abolish it for employing a young apprentice; And I can confirm today that 1 million small businesses have now claimed our new Employment Allowance.

From this April we’re also extending our small business rate relief and our help for the high street. But in my view the current system of Business Rates has not kept pace with the needs of a modern economy and changes to our town centres, and needs far-reaching reform. Businesses large and small have asked for a major review of this tax - and this week that’s what we’ve agreed to do.

The boost I provided to the Annual Investment Allowance comes to an end at the end of the year. However, I am clear from my conversations with business groups that a reduction to £25,000 would not be remotely acceptable – and so it will be set at a much more generous rate.

Today I’m announcing changes to the Enterprise Investment Schemes and Venture Capital Trusts to ensure they are compliant with the latest state aid rules and increasing support to high growth companies.

We set up the Office of Tax Simplification at the start of this Parliament and I want to thank Michael Jack and John Whiting for the fantastic work they have done. To support five million people who are self-employed, and to make their tax affairs simpler, in the next Parliament we will abolish Class 2 National Insurance contributions for the self-employed entirely.

12 million people and small businesses are forced to complete a self-assessment tax return every year. It is complex, costly and time-consuming. We will abolish the annual tax return altogether. Millions of individuals will have the information the Revenue needs automatically uploaded into new digital tax accounts. A minority with the most complex tax affairs will be able to manage their account on-line.

Duties

I have no changes to make to the duties on tobacco and gaming already announced. Last year, I cut beer duty for the second year in a row and the industry estimates that helped create 16,000 jobs. Today I am cutting beer duty for the third year in a row – taking another penny off a pint. I am cutting cider duty by 2% - to support our producers in the West Country and elsewhere. And to back one of the UK’s biggest exports, the duty on Scotch whisky and other spirits will be cut by 2% as well. Wine duty will be frozen.

Fuel

I am today cancelling the fuel duty increase scheduled for September. Petrol frozen again. It’s the longest duty freeze in over twenty years. It saves a family around £10 every time they fill up their car

Personal Allowance

In two weeks’ time it will reach £10,600 The personal tax-free allowance will rise to £10,800 next year – and then to £11,000 the year after. That’s £11,000 you can earn before paying any income tax at all. It means the typical working taxpayer will be over £900 a year better off. It will rise from £42,385 this year to £43,300 by 2017-18. So an £11,000 personal allowance. An above inflation increase in the higher rate. A down-payment on our commitment to raise the personal allowance to £12,500 and raise the Higher Rate threshold to £50,000. An economic plan working for you. And in this Budget the rate of the new transferable tax allowance for married couples will rise to £1,100 too. That’s the allowance coming in just two weeks’ time to help over 4 million couples – help that they would take away, but we on this side are proud to provide.

Savings

First, we will give five million pensioners access to their annuity. For many an annuity is the right product, but for some it makes sense to access their annuity now. So we’re changing the law to make that possible. From next year the punitive tax charge of at least 55% will be abolished. Tax will be applied only at the marginal rate. And we’ll consult to ensure pensioners get the right guidance and advice. So freedom for five million people with an annuity.

Second, we will introduce a radically more Flexible ISA. In 2 weeks’ time the changes I’ve already made mean people will be able to put £15,240 into an ISA. But if you take that money out – you lose your tax free entitlement, and so can’t put it back in. This restricts what people can do with their own savings – but I believe people should be trusted with their hard earned money. With the fully Flexible ISA people will have complete freedom to take money out, and put it back in later in the year, without losing any of their tax-free entitlement It will be available from this autumn and we will also expand the range of investments that are eligible.

Third, we’re going to take two of our most successful policies and combine them to create a brand new Help to Buy ISA. And we do it to tackle two of the biggest challenges facing first time buyers – the low interest rates when you build up your savings, and the high deposits required by the banks. The Help to Buy ISA for first time buyers works like this. For every £200 you save for your deposit, the Government will top it up with £50 more. It’s as simple as this – we’ll work hand in hand to help you buy your first home. This is a Budget that works for you. A 10% deposit on the average first home costs £15,000, so if you put in up to £12,000 – we’ll put in up to £3,000 more. A 25% top-up is equivalent to saving for a deposit from your pre-tax income – it’s effectively a tax cut for first time buyers. Access for pensioners to their annuities. A new Flexible ISA.

Today I introduce a new Personal Savings Allowance that will take 95% of taxpayers out of savings tax altogether. From April next year the first £1,000 of the interest you earn on all of your savings will be completely tax-free. To ensure higher rate taxpayers enjoy the same benefits, but no more, their allowance will be set at £500.