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Yesterday, the chancellor announced his spring budget.
There is a lot to digest and unpick. With a general election looming, it was clear that the chancellor had decided to put more money back into the pockets of working people. However, not much of this money directly comes to small business owners.
National Insurance Contributions are again being cut. The government is cutting the main rate of employee National Insurance by 2p from 10% to 8% from 6 April 2024. Combined with the 2p cut announced at Autumn Statement 2023, this will save the average worker on £35,400 over £900 a year.
The government is also cutting a further 2p from the main rate of self-employed National Insurance on top of the 1p cut announced at Autumn Statement 2023. This means that from 6 April 2024 the main rate of Class 4 NICs for the self-employed will now be reduced from 9% to 6%. Combined with the abolition of the requirement to pay Class 2, this will save an average self-employed person on £28,000, around £650 a year.
The point where businesses need to register for VAT is going up from £85,000 to £90,000. This will supposedly help small businesses grow. There are differing opinions about this. What we see is that, in reality, businesses often slow their growth as they near the VAT threshold. Radically lowering the VAT threshold towards £40,000 or even lower would make it a level playing field for most small businesses. But then, what does the Chancellor really know about small businesses?
Inflation has more than halved from its recent peak, i.e. from 11.1% to 4.0%. The OBR forecasts inflation to fall to its 2% target in Q2 2024, a year earlier than in their November 2023 forecast. In 2023, the UK was pretty much in recession as GDP grew by 0.1%. Growth is now forecast to pick up from the first half of 2024 and the IMF is forecasting that the UK will have the third fastest cumulative growth in the G7 over the 2024-2028 period.
The UK government has recently announced an extension of the Recovery Loan Scheme, which will provide £200 million in funding to assist small businesses to invest and expand. To qualify for the loan, businesses must have a turnover of £45 million or less, must be viable, and should not be experiencing any financial difficulties.
Capital allowances are a great way for businesses to reduce their tax bill. By deducting the value of certain items such as equipment, machinery, and certain business vehicles from their profits, businesses can benefit from tax relief. It’s a smart way to save money and reinvest it back into the business. Full expensing is an allowance which allows companies to use these capital allowances in the year that the investment was made. The chancellor indicated yesterday that at some point in the near future full expensing for leased assets is coming. When? Apparently ‘when affordable to do so’.
At the moment, there is a situation where a household with 2 parents, each earning £49,000 a year, still gets the full Child Benefit, but those with one parent earning over £50,000 will see some or all of the benefit withdrawn. From 6th April 2024 the point at which child benefit will start to be withdrawn will now be at a higher level of earnings i.e. £60,000 not £50,000. Instead of starting to lose child benefit once at least one parent earns over £50,000 a year, it will be £60,000. It will be taken away entirely from £80,000 a year, rather than £60,000. But more importantly, the government is consulting on moving the system from being based on an individual’s salary to a system based on household income. This new system will come in by April 2026. So watch this space!
The government is keen to increase the amount of available housing. It is reducing the higher rate of property capital gains tax from 28% to 24% in April. This will benefit any property owner who is selling a property which is not their home.
The ‘temporary’ 5p cut in fuel duty is being extended for another 12 months.
The alcohol duty freeze is being extended from 1st August to 1st February.
There is a new ISA in town! This ISA gives savers another £5k tax-free allowance, on top of the current £20k that can be subscribed into an ISA. The only restriction is this new UK ISA
needs to be invested in british businesses.
The government is also announcing over £1 billion of new tax reliefs for the UK’s creative industries. This includes introducing a 40% relief from business rates for eligible film studios in England for the next 10 years; introducing a new UK Independent Film Tax Credit; and increasing the rate of tax credit by 5% and removing the 80% cap for visual effects costs in the Audio-Visual Expenditure Credit. A permanent extension will be made to tax relief for theatres, orchestras, museums and galleries.
The government is abolishing the Furnished Holiday Lettings tax regime from 6th April 2025 and the multiple dwelling stamp duty relief from 1st June 2024. Contracts that were exchanged on or before the 6th March 2024 – i.e. before the budget was announced – will continue to get the multiple dwelling stamp duty relief regardless of the completion date. Any purchase that completes before the 1st June 2024 will also get this relief.
The tax breaks for non-domicilied residents, people who live in the UK, but not domiciled here for tax purposes have been abolished. Currently, foreign nationals who live here, but are taxed in another country, do not have to pay tax on their foreign income for up to 15 years. From April 2025 this is changing.
For new arrivals, who have a period of 10 years consecutive non-residence, there will be full tax relief for a 4-year period of subsequent UK tax residence on foreign income and gains arising during this 4-year period, during which time this money can be brought to the UK without an additional tax charge.
Existing tax residents, who have been tax resident for fewer than 4 tax years and are eligible for the scheme, will also benefit from the relief until the end of their 4th year of tax residence.
There are transitional arrangements being put in place for existing non-doms.
In Oct 2026 vapers will be taxed more and the tax on cigarettes and tobacco products will go up.
Sadly, the government is not – on the surface of it – making an investment in front-line HMRC staff. It is investing an extra £140m to improve HMRC’s ability to manage tax debts. Think of
this as an investment in identifying where more tax is due and then having the headcount to get this money paid. If you don’t already have tax investigation insurance, now is the time to take it out!
In addition, it was announced that there is a consultation on how best to implement the Crypto-Asset Reporting Framework and amendments to the Common Reporting Standard.
Interested to find out more?
Call us on 01617 985789
Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb
If you run a business, whether its running sites in construction or keeping things ticking over in hospitality, there’s plenty to learn from how Pep Guardiola is handling Man City right now. As a City supporter, I back them all the way. But let’s be honest, the team’s lost a bit of spark this season. It’s not about bad tactics or lack of effort. It’s about a thin squad, a few too many injuries, and trusted players starting to show their age. And in business, you get the same thing. Long-standing staff, once vital to the operation, start to slow down or get too comfortable. The team that got you here might not be the one to take you further. So how do you know who to back, who to support, and where you need to make some changes?
Bigger isn’t always better – it’s about who you can rely on
In business, it’s tempting to think that growing the team means adding more people. But if those people aren’t reliable, you’re just creating more problems and more ballaches. Whether it’s the lads on-site, a kitchen team, or your back office, you want people who show up, deliver, and don’t need chasing.
Even Guardiola admits he prefers a smaller squad. Fewer people, more trust. He’s not chasing numbers. He’s looking for players who are dependable. Same goes for you. It’s not about how many you’ve got. It’s about who you can count on when it matters.
You can’t predict everything, but you can be ready for it
You know how it goes. The site manager is off with a back injury, your second-in-command is at a funeral, and your best labourer has just handed in his notice. The work still needs to get done. Clients don’t care about your staffing problems.
That’s the sort of thing that’s hit City this season. Rodri out. Centre-backs are dropping like flies. It’s derailed them. Not because they’re a bad team, but because they didn’t have enough cover when it mattered.
In business, you’ve got to be ready for the gaps. That means developing people, cross-skilling where you can, and not leaving the whole load on one or two people.
Some people outgrow the role – others get left behind by it
As your business grows, the pace picks up. Expectations shift. What used to be a one-man job now needs a team. What was good enough two years ago doesn’t cut it now.
It’s not personal. It’s progress.
At City, there are players who’ve been top class for years. But they’re not what they used to be anymore. Not saying they’re not great players (despite what I often shout from my sofa on a Sunday afternoon), but for some reason they’re underperforming and more often than not, that is down to the management and team dynamic. Guardiola knows it – now he has to decide who still fits.
Same for you. Be honest. Who’s keeping up? Who’s falling behind? Who could thrive again with the right support or a new role? Making time to find out could avoid the risk of dragging everyone down with outdated decisions.
The team members who hold everything together, keep projects moving, and step up without being asked are the gems of the business. If you’ve got someone like that, make sure they know they’re appreciated. Pay them what they’re worth. Don’t wait until they’re halfway out the door. Your team will be more likely to perform above standards if their hard work is acknowledged and they feel appreciated.
Loyalty’s great – until it starts costing you
We’ve all got that one person. Been with you since day one. Knows the business inside out. Was brilliant once. But now they’re just there, not making a whole lot of effort, slipping a bit. And even resisting change.
It’s hard to know what to do. You don’t want to be unfair. But you also can’t ignore it forever or make excuses because they’ve been around for as long as they have. That’s not fair to other members of the team either.
Even Guardiola’s got this issue. His midfield’s ageing, some players haven’t found form. He still believes in them – but belief doesn’t keep you top of the table. We’re a prime example of that. At some point, you’ve got to decide whether someone’s part of the future or just holding onto the past.
Your team reflects your leadership
If you’re always firefighting, jumping in to fix problems, or carrying people who can’t keep up, it wears you down. You get snappy. Drained. Short on ideas.
And the team sees it. They stop pushing. They start waiting.
That’s how businesses stall. And it’s not just you. Even top managers feel it. Guardiola’s said he’s struggling to keep the rhythm when the team isn’t firing. The mood of the boss sets the tone. If your energy’s off, it’s often because your team setup isn’t right.
Fix that, and the rest falls into place.
Make the call – before someone else does
If your best staff aren’t being recognised, they’ll go somewhere else. If your underperformers aren’t challenged, your top people will get fed up. You don’t have to cut all ties and start over. You just have to manage it properly.
At City, Pep’s now facing big calls. Do you refresh the squad? Do you keep trusting the old guard? Do you invest in new blood or back the players you’ve got?
You’ve got the same choices in business. Look at performance. Look at potential. And don’t wait until the results dip before you act.
Build a solid game plan
It’s not about loyalty vs leadership, or you vs the team. It’s about building the right team for the business you’ve got now. And the one you want in the future. If you don’t make the changes, the results will stay the same. There’s no growth in that.
Know your people. Pay your best ones what they’re worth. Support the ones who can grow. And be brave enough to let go of the ones who can’t. That’s what managing is.
I’m not Pep, and this isn’t the Etihad, but your business still needs a solid game plan. If you’re making big decisions without knowing your margins, cashflow, or who’s costing you more than they bring in, you’re guessing. And guessing costs money. Let’s take a proper look, get the facts, and sort it.
Interested to find out more?
Call us on 01617 985789
Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb
If you’re a high earner with young children, first of all well done, but here’s something that might catch you off guard: once your income creeps over £100,000, even by a single pound, you’re forced to kiss goodbye to those 15 or 30 hours of free childcare a week.
Not reduced. Not renegotiated. Gone. Simple as that.
This has taken quite a few of my clients by surprise. I’m talking about hardworking doctors, dentists, consultants, business owners. People whose earnings look great on paper, but who suddenly find themselves forking out a big lump sum each month for childcare they were previously getting help with. AKA a less-than-ideal situation to be in.
The moment your adjusted net income goes over £100,000, you no longer qualify for the 30 free hours of childcare per week. That support was worth thousands each year. And then it’s off the table. Just like that. With no warning.
It doesn’t matter if your income hits £100,001. There’s no gradual phasing out. Just an abrupt end to any sort of help.
If both parents work and meet the eligibility rules, this benefit can be a real turning point. But once one of you crosses that £100k mark, it’s gone. That can sting, especially when you’re already trying to keep up with rising mortgage rates, tax rises, and all the usual costs of having kids under five.
Here’s what your ‘adjusted net income’ includes:
So, if you’re edging close to the line, don’t panic yet. There are ways to bring your income back under £100,000 legally and efficiently. Let me explain how.
This is the big one.
You can put up to £60,000 a year into your pension tax-free (subject to allowances and reducing if you earn more than £200k).
So if you’re earning £105,000, a pension contribution of £5,000 could bring your adjusted net income back under £100k. Not only do you keep your childcare support, you also boost your retirement pot and reduce your tax bill. Sounds nice doesn’t it?
It’s essentially a triple win.
A lot of business owners and limited company directors have some flexibility in how they pay themselves. Instead of taking that chunky dividend this year, consider a pension top-up.
Alright, you’re locking the money away until you’re getting on for 60 (at least), but the long-term gain often outweighs the short-term childcare spend.
Not quite as powerful as pensions, but every little helps. Just be aware that not everything qualifies, and some things that sound clever (like taking cash instead of a company car) don’t always count in your favour. Always best to check first.
Schemes like:
These reduce your gross income, which in turn lowers your taxable income. If you’re just slightly over the £100k mark, salary sacrifice might just tip the scales in your favour.
Have a word with your employer or accountant to see what’s available and what’s worth using. And don’t wait until the end of the tax year – you ideally want these in place sooner rather than later.
This one’s not for everyone, but it can work well in the right setup.
If your partner helps with the admin, invoicing, diary management, or any actual tasks in the business, you can legitimately employ them and pay them a salary.
Done properly, that salary becomes a business expense, which reduces your profits (and potentially your income below the threshold).
But here’s the key part: they must actually do the work, and you need to pay them at a reasonable rate for what they’re doing. No funny business. HMRC has no issue with this if it’s all above board. If it looks dodgy or inflated, you’ll have them knocking at your door.
This isn’t about dodging tax or playing games. It’s about understanding the rules and making them work for you. Every one of the strategies above is entirely legal and HMRC-approved. But they do need to be carried out properly and documented the right way.
And a quick one to clear up while we’re here: school supplies and childcare bits aren’t deductible business expenses. Trying to put those through your company might seem clever, but it’s a guaranteed way to get HMRC sniffing around. Just don’t do it.
Get in touch with your accountant (or me) before making any big moves. The worst thing you can do is rush in and make it ten times worse.
Hitting six figures in earnings feels like a milestone, and it is one to be proud of. But like all good things, there’s a catch. Especially where HMRC is involved, it comes with hidden costs and disappearing benefits. If you’ve got young kids, the loss of childcare support can be a brutal one to add to the list.
So if you’re on the edge, do the maths. And if there’s a smart way to keep your income under that magic £100k line, without doing damage to your future finances, why wouldn’t you?
Sorted properly, you can have the best of both worlds: a growing income and the support you’re entitled to.
Drop me a line if you need a hand going through it all properly. Or share this with someone who might be about to get caught out. Better to know now than get a nasty bill come September. And timing is everything. Don’t wait until your income goes over the line. Otherwise, it’s too late.
Interested to find out more?
Call us on 01617 985789
Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb
If you run a pub, cafe, restaurant or hotel, you’ve probably noticed things are getting a bit tighter. Not just in customer spending, but in your own outgoings too. And it’s not your imagination. The cost of doing business in hospitality is rising fast.
There’s a proper squeeze happening right now for hospitality businesses across the UK. Three major cost increases all kicked in this April, a triple whammy. We all know the government loves nothing more than to create more financial pressure for business owners.
Let’s start with National Insurance. From the 6th April, the rate employers pay has jumped from 13.8% to 15%. That might look and sound small on paper, but once it’s applied across your whole team, it takes quite a significant bite out of your wage budget.
And it gets worse. The threshold for when you start paying National Insurance has dropped. It used to be just over £9,000. Now it kicks in once someone earns more than £5,000. That means you’re paying more, and on more of your employees’ pay.
There is a hint of silver lining. The Employment Allowance has increased from £5,000 to £10,500. So, if your business doesn’t employ loads of people, that might help take the edge off. But if you’ve got a full team or multiple sites, it’s not going to stretch very far.
Next up, business rates. Surprise, surprise – those have increased too.
And then we’ve got the rise in minimum wage. Most hospitality businesses rely on roles at or near minimum wage. And when that rate goes up, you can’t leave the next pay band behind. So wages rise all around. Fair enough, but expensive.
Put all of that together and you’ve got a serious cost increase across the board – the triple whammy that’s affecting profitability for pubs, restaurants and cafés across the UK.
Now is not the time to bury your head in the sand. Sitting back and hoping it all evens out is not a plan. You’ve got to take action and get your books working for you.
A few weeks ago I spoke to one of my pub clients. Nice fella. He’d noticed that lunchtime trade had dropped off, but wages were still being paid. He was losing money in the middle of the day and didn’t know where to start.
First thing I told him – get his books in order. You’ve got to be able to see what’s making you money and what isn’t. If you don’t know which items are profitable, or whether takeaway is doing better than sitting in, you’re flying blind.
Then we talked about the menu. He wasn’t offering anything for the lunch crowd – no soup, no light bites, nothing quick. I suggested something simple and cost-effective. Soup, pâté, sandwiches. Something you can prep ahead and serve fast. Something that brings people in for a quick bite and a pint.
It’s the same idea as the plat du jour in France. A couple of set dishes at a decent price. No waste, quick turnaround, and easy for the kitchen to manage.
He’s now testing a lunch deal: soup, sandwich, and a drink. Sit in or takeaway. It’s already helping bring people through the door during those quieter hours.
This isn’t just about menus. Here’s what every hospitality business owner should be reviewing right now:
And whatever you do, don’t forget to get the word out. Marketing makes a real difference, make sure you’re letting people know about menu changes, lunch deals and happy hour. Whether that’s social media marketing, using a chalkboard out front or posting in local groups. You don’t need a big campaign, just make sure people know what you’re offering.
Let’s be honest, hospitality business costs across the UK are not going back down any time soon. National Insurance, minimum wage, business rates – it’s all gone up, and it’s not likely to reverse. If you carry on without making changes, your profit will get squeezed until there’s nothing left.
So what’s the answer? Take a long hard look at your books. Cut waste where you can. Try new ideas. Adjust your pricing if you need to. Make every part of your business work harder.
And if you’re not sure where to start – that’s where I come in. I’ll help you figure out what’s eating into your margin and what changes you can make to keep more money in your pocket.
Give me a ring, drop me an email, or come and have a face-to-face chat over a brew.
nterested to find out more?
Call us on 01617 985789
Or book a meeting at https://calendly.com/d/ckfd-tzk-zbb
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