GENERAL ELECTION 2024

With the upcoming general election on 4 July 2024 we’re keeping an eye on each parties’ manifesto as a new government can mean significant legislative and tax upheavals that can impact business operations and financial planning.

In brief, both the Conservatives and Labour are pledging that they will not make changes to personal income tax rates.  Labour also states they will not increase National Insurance though the conservatives’ manifesto maintains a further 2p reduction by April 2027. 

For businesses, the Conservatives are pledging reductions by the abolition of Class 4 NIC before 2029, no increase in corporation tax and an extension of full expensing on brand new plant and machinery once fiscal conditions allow.  Labour has pledged to cap the current rate of corporation tax but this could mean that there may be increases for smaller companies currently benefiting from the small profits rate or marginal relief.   

What are the other parties saying about tax? 

The Liberal Democrats are proposing a fairer tax system looking at increasing the global minimum corporation tax rate to 21% and raising the personal income tax allowance when public finances allow.   

The Green Party is advocating for a £15 per hour National Minimum Wage but allowing small businesses to reduce their National Insurance payments as an offset, a wealth tax for those with assets above £10 million, aligning Capital Gains Tax rates with income tax rates and removing the upper earnings limit on NIC which will mean higher earning employees paying NIC on all their employment earnings.   

Reform UK proposes to increase the personal allowance to £20,000 and the higher rate threshold to £70,000, cut residential Stamp Duty Land Tax, abolish Inheritance Tax for estates under £2 million, increase the VAT registration threshold to £150,000 and lift the small profits threshold for corporation tax to £100,000 whilst lowering the main rate from 25% to 15% over three years.

Whether these pledges are actually affordable is another question and a government is not legally held to its manifesto or required to still to the promises they have made. 

We will bring you all the post-election changes in our next newsletters. 

FALSE CLAIMS ON BUSINESS RATES APPEAL DEADLINES

The Valuation Office Agency (VOA) has issued a warning about false claims being made about the deadline for appealing the 2023 list for business rates.  

Some agents appear to be claiming that the deadline is 30 June, which is not true as you are generally able to appeal your property valuation on the 2023 list at any time until March 2026.

CHILD BENEFIT FOR CHILDREN IN FURTHER EDUCATION

Parents of children aged between 16 and 19 years of age and continuing their education or training can extend the Child Benefit they receive.  If this applies to you, HMRC should be in the process of writing to you to remind you about this.  Their letter will include a QR that can be scanned to direct you to a page on GOV.UK that will allow you to easily update your claim.   You should receive this letter by 17 July, but if you have not received it by then you can still claim via GOV.UK or HMRC app though you will need a Government Gateway user ID and password to be able to do this. 

Child Benefit can be worth £1331 a year for your first or only child and up to £881 a year for each additional child.  Payments automatically stop on 31 August after the child has turned 16 unless parents take action to renew their claim.

NEW RULES ON DISTRIBUTING TIPS

The Employment (Allocation of Tips) Act 2023 will come into effect on 1 October 2024 aiming to improve fairness by mandating that all tips, gratuities and service charges are allocated fairly among employees.  This will include both cash and card tips and prevent employers making deductions for administrative fees.  Employers will also need to have a written policy outlining the distribution of tips and keep detailed records of all tips received and distributed for a period of three years.

We are here to work alongside you and help you prosper so please do get in touch at any time.

Dawn, James, Claire, Rebecca, Elaine, Penn, Nat, Lucy, Becky, Steph & Janet.
Clarksons 01969 624999