Autumn Budget Expectations 2024: Insights from Lewis Brownlee

With the 2024 Autumn Budget approaching, significant changes are expected to impact businesses. In our latest blog, Tax Director Tom Foster and Payroll Manager Stephen Farrington provide expert analysis on possible changes. From tax reforms to wage adjustments, businesses must be ready to act swiftly. Below are the key insights from their detailed discussion.

National Living Wage Revisions

A significant increase in the National Living Wage (NLW) is anticipated, with the Low Pay Commission (LPC) tasked with reviewing wage levels. The NLW could rise to £12.10 per hour by April 2025, and it is expected that the separate wage rate for 18- to 20-year-olds will be abolished.

This change would raise wages for younger workers, but businesses in retail and hospitality could face challenges. A wage rise from £16,770 to £23,595 per annum for an 18- to 20-year-old could require staffing strategies to be reassessed. As Stephen Farrington notes, Budget announcements will need to be closely monitored to ensure businesses adapt accordingly.

Anticipated Tax Reforms

It is expected that income tax for top earners will return to a 50% rate. Businesses and individuals must prepare for the possibility. A merging of National Insurance with income tax is also anticipated, which could come into effect in 2026, reshaping employee contributions.

Additionally, pension contributions may be subject to employers’ National Insurance, with the annual allowance potentially reduced to £25,000 from 2025/26. Tom Foster advises that businesses should start preparing for these expected changes.

Last-Minute Tax Planning Tips

Due to uncertainty, Tom Foster recommends a cautious approach to last-minute tax planning. His tips include:

• Share portfolios could be tidied up now to trigger gains.
• Pension pots should be topped up before allowance reductions.
• Gifting of assets such as property or shares might be considered, although capital gains tax should be reviewed.

However, Tom advises against taking action based solely on speculation.

Stay Informed with Lewis Brownlee

Significant changes are expected in the 2024 Autumn Budget, and it is essential to stay informed. Our team, including Tom Foster and Stephen Farrington, will guide you through these potential adjustments and help you remain agile.

For personalised advice on how the Budget may affect your business, contact us today.