Navigating Budget Changes: How they affect Your Business and How we can help you

With this budget dominating the news and social media, you’ve likely heard about the significant changes that were announced. But what do these changes mean for your business, and how can we assist you in navigating them?

We’ve summarised the key tax changes below, but if you’d like a more in-depth understanding, Jo is available to guide you through it all in an upcoming workshop or webinar. Secure your free spot, and if you’re already an existing client, please use code BWClient using this link.

Workshop & Webinar Dates:

• Tuesday, 12th November at 4 pm – Webinar
• Friday, 15th November at 12 pm – ‘Lunch and Learn’ in our office

Supporting Employers with Payroll Adjustments

If you employ staff, you may wonder how the changes to the National Minimum Wage (NMW) and Employer’s National Insurance (NI) will impact your payroll. We’re here to help! Contact us, and we’ll recalculate your October figures using the new rules, helping you anticipate any impact on your expenses.

In December, we’ll also offer focused Workshops and Webinars on employment obligations to clarify your responsibilities and make planning easier. You can book using the same link above.

Key Budget Changes to Note

National Insurance Contributions (NIC)

• Threshold Adjustment: The earnings threshold for employers’ Class 1 contributions drops from £9,100 to £5,000.
• Rate Increase: Employers’ NIC rate rises from 13.8% to 15% starting 6th April 2025.
• Employment Allowance Increase: Eligible employers will see an increase from £5,000 to £10,500.

Capital Gains Tax (CGT)

• Rate Changes: Effective immediately:
  • Basic Rate: Increased from 10% to 18%
  • Higher Rate: Increased from 20% to 24%
• Timing for Lower Rates: Disposals made before 30th October 2024 will still be taxed at the previous, lower rate.
• Annual Exempt Amount: This remains at £3,000 for 2025/2026.

Inheritance Tax (IHT)

• Frozen Bands: No changes in rates or allowances; bands are now frozen until 5th April 2030.

Pension Death Benefits

• New Inclusion: From 6th April 2027, unused pension funds and death benefits will be included in a person’s estate for IHT.
• Reporting Obligation: Pension scheme administrators will be responsible for reporting and paying any inheritance tax on these benefits.

VAT

• Thresholds Remain Unchanged: As of 1st April 2025:
  • Registration threshold: £90,000
  • Deregistration threshold: £88,000
• Private School Fees: From 1st January 2025, VAT will apply to private school fees at the standard rate.

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA)

• Expansion for Landlords & Sole Traders: MTD will extend to those with incomes over £20,000 by the end of this parliament.
  • April 2026: Applies to incomes over £50,000
  • April 2027: Applies to incomes over £30,000

Furnished Holiday Lettings (FHL)

• Tax Treatment Changes: Legislation will end the specific tax treatment for FHL properties.
• Effective Dates: These changes begin on or after:
  • 6th April 2025 for Income Tax and CGT
  • 1st April 2025 for Corporation Tax

Van vs. Car Classification

• Updated Classification: From 6th April 2025, most double cab pick-ups will no longer qualify as vans for benefit charges.
• Transitional Provisions: Employers with existing vehicles can retain van classification until disposal or until 5th April 2029, whichever comes first.

If this all sounds too complicated, then we’re committed to helping you understand and adapt to these changes seamlessly. Our workshops and webinars are designed to provide clarity and actionable insights, so don’t hesitate to join us.

In early 2017 Tax-Free Childcare will be launched.  One of the points that jumped out at us and thought you might like to know is that self-employed parents will be able to get support with childcare costs in the Tax-Free Childcare, not like the current Employer-Supported Childcare scheme.

 

So, what is Tax-Free Childcare?

• Tax-Free Childcare will be available to around 2 million household to help with the cost of childcare with a registered provider, enabling more parents to go out to work.
• For every 80p you (or someone else) pays in, the government will put in an extra 20p. This is equivalent to the 20% tax that most people pay.  The government will top up the account with 20% of childcare costs up to a total of £10,000 – the equivalent of up to £2,000 support per child per year (or £4,000 for disabled children).
• You can pay money in when you like, giving you the flexibility to pay in more some months and less in others. This could enable you to build up a balance in your account to use at times when you need more childcare than normal.
• It’s not just parents who can pay in – grandparents, other family members and employers may also pay in.
• The scheme will be available for children up age 12, and up to the age of 17 for children with disabilities.

 

Do you qualify?

• Tax-Free Childcare doesn’t rely on employers offering the scheme, unlike the current Employer-Supported Childcare scheme.
• The scheme aims to be flexible for parents. To qualify parents will have to be in work and each earning around £115 a week, but no more than £100,000 each per year.
• You will be able to get support from this scheme if you are self-employed parents. To support newly self-employed parents, the government is introducing a ‘start-up’ period.  During this, self-employed parents won’t have to earn the minimum income level.

 

What will you need to do?

• You will open an online (National Savings & Investment) account in to which you can pay in to, to cover the cost of childcare with a registered provider. This will be done through the government website, GOV.UK.
• The scheme will be rolled out gradually to families, with parents of the youngest children been able to apply first. You will be able to apply for all your children at the same time as soon as your youngest is eligible.
• All parents will be able to join the scheme by the end of 2017.
• There will be a simple log in service for you to view your accounts for all your children at once and review your circumstances every 3 months.

 

Do I have to swap schemes?

• If you currently receive Employer-Supported Childcare then you may continue if you desire as the Employer- Supported Childcare scheme will continue to run. The current scheme will remain open to new entrants until April 2018 – parents already registered by this date will be able to continue using it for as long as their employer offers it.

 

Here at Business Works we have done various calculations to work out which scheme would be best for some of our clients, taking in to consideration earnings, childcare costs, taxable income and salary sacrifice.

If you would like us to look at your circumstances or would like more information please do not hesitate to get in touch with us.

 

Source: gov.uk

THE ROLE

You will be required to deliver work across a portfolio of clients, as part of a close knit team, ensuring the highest possible standards of client service at all times and taking an active role in the growth of the business.

• Preparing statutory and trading accounts
• Preparation and review of VAT returns
• Preparation and review of Corporation tax returns
• Preparation and review of Personal tax returns
• Maintaining records and management information
• Overseeing bookkeeping tasks of junior colleagues and trainees
• Attending client meetings

THE PERSON

The successful candidate will ideally be ACA / ACCA qualified, however candidates in the final stages of the qualifications or qualified by experience may also be considered for the role.

This position is suited to an accountant with experience of a working in an Accounting Practice.

THE PACKAGE

This is a part time position offering between 16 and 30 hrs per week.  It can be flexible with regards to hours/days worked.  However, for the right candidate full time may be considered.

The salary is negotiable depending on experience and qualifications. Free parking is available on site, and the practice is easily accessible by road.

If you’re looking to work in a friendly office for a fast growing company in a very hands on role, then please send your CV to us today.

Please email full CV to helen.cooper@businessworksuk.co.uk

We have a brilliant opportunity to join our team.

JOB DESCRIPTION

• Attendance at college, completion of all college work and exams
• Undertaking client bookkeeping, using spreadsheets and various accounting software
• Bank reconciliations
• Assisting with the preparation of accounts and tax returns
• Client administration
• Liaising with clients to ensure ‘books’ are received in a timely manner
• Payroll assistance
• VAT assistance
• Potential client administration
• Company secretarial work for Limited Company clients
• Answering the telephone and handling queries
• Monitoring the generic email inbox and respond to queries
• Maintaining spreadsheets to update budgets
• Advising project managers on invoicing, expenses and financial aspects of proposal-writing
• Attendance of events, sometimes outside of office hours
• General office duties to include, but not limited to, ordering stationery, making refreshments

PERSON SPECIFICATION

• A desire to pursue a career in accounting
• Strong oral and written communication skills
• Very good organisational and time management skills
• Good IT skills
• Very good analytical thinking and problem solver
• Acute attention to detail
• Friendly and personable
• English and Maths GCSE grade C or above

To apply please email CV and covering letter to helen.cooper@businessworksuk.co.uk