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Navigate Tax Rises In 2024’s Autumn Budget, Chancellor Rachel Reeves unveiled several measures affecting small businesses from now onwards 01 National Insurance hike Starting in April, employers’ National Insurance contributions are set to rise by 1.2%, bringing the rate to 15%. Plus, the threshold for paying NI per employee drops from £9,100 to £5,000. This means additional costs for your business. TIP: To offset these increases, consider taking advantage of the Employment Allowance, which has been boosted from £5,000 to £10,500. This move ensures that around 865,000 employers won’t pay any NI next year. Make sure your business qualifies and apply to lighten your NI load. 02 Business rates adjustments Good news for the retail, hospitality, and leisure sectors: permanent tax rate cuts are on the horizon for 2026/27. However, starting in 2025/26, the current 75% business rate relief will drop to 40%, with a maximum discount of £110,000. TIP: Plan ahead for this change by evaluating your current expenses and setting aside funds to cover the increased rates. Exploring cost-saving measures now can help cushion the impact when the relief reduction kicks in. 03 Corporate Tax roadmap The government has capped the Corporation Tax rate at 25% for the duration of this parliament. They’re also keeping the small profits rate and marginal relief as is, along with maintaining generous R&D reliefs. TIP: Use this period of stability to your advantage. With a £1 million annual investment allowance in place, nowmight be a great time to invest in new equipment or technology to boost your business’s efficiency and growth. 05 Impact on small businesses While the Employment Allowance increase offers some relief, the hike in National Insurance and changes in business rate relief could squeeze your finances as your business grows. TIP: Stay proactive by regularly reviewing your financial health. Consider consulting with a financial advisor to explore tax planning strategies that can help mitigate these additional costs. Keeping a close eye on cash flow and adjusting your budget accordingly will be key to navigating these changes smoothly. 5 WAYS FOR FRANCHISES TO 04 Capital Gains Tax (CGT) increase The lower rate of Capital Gains Tax will rise from 10% to 18%, and the higher rate from 20% to 24%, effective now. Additionally, while the Business Asset Disposal Relief lifetime limit remains at £1 million, the tax rate on qualifying disposals will increase from 10% to 14% in 2025, and to 18% in 2026. TIP: If you’re considering selling business assets or shares, it might be beneficial to review your plans sooner rather than later. Engaging with a financial advisor can help you navigate these changes and develop strategies to minimise your tax liabilities. 43 WHAT-FRANCHISE.COM Ins ights