2024 Budget Wishlist: What Accountants in Rotherham Hope to See

Oct 29, 2024

As the UK government prepares to unveil the 2024 Budget, small businesses and their accountants eagerly await potential changes that could shape the financial landscape for the upcoming year. For many businesses across Rotherham, particularly those in construction and other small enterprises, budgetary shifts can mean the difference between growth and stagnation. Here, we’ll dive into what changes accountants in rotherham hope to see, with insights specific to local firms and industries like construction that stand to benefit the most.

If you’re a small business owner or looking for the best accountant in Rotherham to guide your business through these potential updates, here’s what to look out for in the 2024 Budget announcement.

Simplified and Increased Tax Reliefs for Small Businesses

One of the most anticipated hopes for small businesses in the 2024 Budget is an increase and simplification of tax reliefs. Many accountants, especially those specialising as accountants for small business, are calling for streamlined processes to make accessing relief easier and more attainable.

The UK’s tax landscape can often feel like a maze, particularly for small businesses that don’t have extensive accounting departments. Increased reliefs, especially those targeting small businesses, would allow owners to reinvest in their operations, hire more staff, and grow their reach. Ideally, a simplified tax relief system that focuses on sectors like retail, construction, and manufacturing could provide much-needed support.

Boosted Support for Construction Businesses

In the Rotherham area, construction is a prominent industry, and it has unique financial needs that call for tailored support. Accountants specialising as accountants for construction businesses are advocating for targeted budget adjustments to address construction-specific challenges. The construction sector has been hit hard by rising materials costs, supply chain issues, and labour shortages, which have inflated project expenses and reduced profit margins.

A few potential measures accountants hope to see include:

  • Extended or expanded capital allowances to encourage investment in machinery and technology that can streamline operations.
  • Tax incentives for sustainability in construction, offering relief on eco-friendly building practices, which are becoming increasingly relevant.
  • Enhanced VAT exemptions or reductions for key materials to help lower costs for both contractors and their clients.

These adjustments could make a significant impact, helping the industry stabilize and grow in a sustainable way.

Expanded R&D Tax Credits for Small Businesses

The UK’s R&D tax credit system has been a valuable tool for innovative companies. However, the system could better serve small businesses by expanding eligibility and simplifying claims, which is something many accountants would love to see in the 2024 Budget.

For small businesses, especially those without dedicated R&D departments, claiming these credits can be daunting. A simplified process with clearer guidance would enable more small businesses to benefit from R&D tax credits, which could drive further innovation across sectors. An accountant for small businesses in Rotherham could help more clients take advantage of these credits if they were made more accessible, enabling smaller companies to compete on a larger stage.

Reforms in IR35 Legislation

IR35 legislation has been a complex issue for both small businesses and contractors, especially within the construction industry. Navigating IR35 compliance can be challenging and often comes with increased administrative costs for small businesses and freelancers alike.

Accountants across the board hope to see reforms to make IR35 clearer and more supportive of small businesses and contractors, potentially reducing the administrative burden. A more straightforward approach would make it easier for accountants for construction businesses to help clients ensure compliance without added expenses, especially in sectors that heavily rely on freelancers or contract workers, such as IT, marketing, and, of course, construction.

Greater Support for Digital Transformation

In today’s competitive business environment, digital transformation is more than just a buzzword; it’s a necessity. Accountants working with small businesses in Rotherham and beyond recognise the importance of adopting technology to improve efficiency, streamline operations, and enhance customer experiences.

In the 2024 Budget, accountants hope for more grants, reliefs, and incentives geared toward digital adoption for small businesses. This could include tax breaks for implementing new software, upgrading IT infrastructure, or investing in cybersecurity. For businesses in construction, for example, project management software, CRM systems, and digital compliance tools are essential but can be costly. A digital transformation fund or enhanced tax deductions would allow more small businesses to embrace technology without breaking the bank.

Business Rate Relief Extensions

Business rates are a significant expense for many small businesses, especially those with physical premises. Accountants across the UK hope to see further extensions of business rate relief for small businesses in the 2024 Budget. While relief programs have been beneficial in recent years, the cost pressures many small businesses continue to face make further support essential.

In particular, many retail and construction businesses could benefit from business rate reductions. With the right support, these businesses could channel savings back into growth opportunities, hire additional staff, or weather difficult economic conditions. A continued freeze or reduction in rates for qualifying businesses could be a lifeline for those struggling to meet rent and other operating costs.

More Favourable VAT Policies for Small Businesses

Navigating VAT can be a pain point for small business owners, especially those in construction or manufacturing with high volumes of transactions. Accountants hope the 2024 Budget will address VAT complexities by adjusting thresholds or offering simplified VAT schemes for smaller businesses.

A lower VAT threshold for certain industries, or new VAT schemes aimed at easing the administrative burden, would help small business owners maintain compliance without extra stress. Many accountants also hope for adjustments in VAT exemptions for specific goods or services, allowing construction businesses to benefit from lower costs on materials and essential equipment.

More Accessible and Flexible Business Loans

Access to capital is one of the top challenges for small businesses in the UK, and accountants are hoping the 2024 Budget introduces measures to improve the accessibility of government-backed loans or grants. Programs aimed at small businesses, with flexibility in repayment and lower interest rates, could provide a much-needed boost.

For construction businesses in particular, accessible loans would allow for project expansion, equipment investments, and labour costs. A loan scheme targeting specific sectors or regions, like Rotherham, could further help local businesses overcome financial barriers, contributing to broader economic growth.

Enhanced Tax Relief for Training and Apprenticeships

Skill shortages continue to affect small businesses in nearly every sector. Accountants are hoping the budget will include tax reliefs or grants aimed at supporting training, upskilling, and apprenticeships. For small construction businesses, this type of support would be transformative, helping owners train the next generation of skilled workers and reduce reliance on costly contract labour.

Clear Guidance on Inflation Management

Inflation has been a persistent issue, affecting everything from supply chains to wage bills. Accountants across the board are hoping the 2024 Budget will provide clearer guidelines or incentives to help small businesses manage inflation-driven costs.

Whether it’s grants for rising energy bills or tax credits to offset increased material costs, any budget measures aimed at curbing the impacts of inflation could be a big relief for many small business owners and their accountants alike.

Final Thoughts

The 2024 Budget offers a unique opportunity to support small businesses, especially in local areas like Rotherham. If you’re a business owner wondering how the new Budget could impact your finances, consider reaching out to the best accountant in Rotherham to discuss strategic planning and proactive budgeting. Working with an accountant for small businesses or an accountant for construction businesses can help you stay ahead of any changes and ensure you’re maximising every opportunity.

At a time of economic uncertainty, even small adjustments in tax policies and relief programs could significantly bolster small businesses across the UK, helping them thrive in the coming year. Let’s hope the Budget brings the support our small businesses need.

The Chancellor of the Exchequer will present her Autumn Budget 2024 to Parliament on Wednesday 30 October 2024.

Have a question? Get in touch