Key takeaways for sole traders, limited company directors, and property owners
The Autumn Budget 2024 brought several changes that could impact small business owners, property investors, and freelancers. In this summary of qualified Accountant and financial strategy expert, Emma Bail’s recent webinar, we break down the key points from her analysis, explaining how these updates will affect different groups and covering essential points on National Insurance.
Watch the recording below and download the slides
Key takeaways from The Autumn Budget 2024
1. Changes for sole traders
For sole traders, there are updates in the way National Insurance contributions will be calculated, as well as shifts in thresholds for tax brackets. Emma discussed how these changes could affect monthly take-home income, particularly for sole traders in certain earnings brackets. The good news? By keeping records up to date and consulting an accountant when preparing for tax season, sole traders can remain well-prepared to handle these shifts.
2. Key updates for limited company directors
Limited company directors will also feel the effects of National Insurance changes, especially in terms of employer and employee contributions. Emma shared tips on how company directors can adjust salaries and dividends to manage these costs efficiently. She also highlighted the importance of proactive tax planning to account for increased contributions without impacting overall business profitability.
3. National Insurance changes explained
Emma simplified the three major changes in National Insurance, covering employee contributions, employer contributions, and the self-employed rate. For many small business owners, these changes can seem complex, but Emma’s guidance breaks it down:
Employee contributions: Adjustments to contribution thresholds mean that employees will see slight changes in their deductions.
Employer contributions: With these rates rising, companies may need to adjust budgets, especially if they have a larger team.
Self-employed National Insurance: Emma offered a clear explanation of how the new rate affects freelancers and sole traders, encouraging proactive financial planning.
4. Tax planning tips for property owners
For property owners, changes in capital gains tax thresholds and allowable deductions are also worth noting. Emma discussed strategies to minimise tax impact, including careful tracking of property expenses and staying informed about deductible items. She emphasised the importance of planning for these changes well in advance to avoid unexpected costs at year-end.
Conclusion
The Autumn Budget’s updates bring both opportunities and challenges for business owners and property investors. By understanding how these changes impact your specific financial situation, you can stay prepared and manage your finances with confidence. Emma’s advice? Stay proactive, consult your accountant regularly, and keep a close eye on your budget.
Did you know?
At Evolve Accounting, we provide tailored financial advice to help you navigate changes like these. Get in touch with us to discuss how the Autumn Budget impacts your finances and explore strategies to stay ahead.
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