If you’ve been following our Autumn Budget 2024 blogs, you’ll know we have plenty of content lined up for you over the next couple of weeks in the run-up to the big day. With it being Labour’s first budget since coming into power earlier this year, everyone is set for some stark changes up ahead. With so much speculation surrounding what exactly will be covered, we’ve had our eyes and ears open to gather as much intel as we can to share with you and appease worries.
We’ve made a list of the most common FAQs circulating at the moment with the hope of addressing your concerns and clarifying any potential impacts.
How can I watch the Autumn Budget?
The budget will be delivered by Chancellor Rachel Reeves on Wednesday 30th October shortly after 12.30pm. Expecting to last approximately 1 hour, the speech will be broadcast live on BBC, BBC News website, and streamed on Parliament TV.
How quickly do the changes take effect?
Any budget changes announced can be implemented on different dates. While it’s possible some may take effect straight away, they are normally just ‘accepted’ on the day. MPs then spend several days discussing and debating plans before approving proposals, so it takes some time to officially turn tax measures and policies announced into law.
What will be addressed?
This is perhaps the most frequently asked question, and one which we don’t have a full answer to. However, with Labour’s outlined commitment to priorisiting growth, it is likely that the majority of changes will relate to expanding and boosting the economy. For a detailed plan on how they will go about this, we’ll have to wait until the 30th to see. That being said, announcements that have already been made are a good indication of incoming changes, for example when it comes to tax. Income tax, VAT and Employee’s NI are in the safe zone, leaving others open for changes (see below).
Are there likely to be tax increases?
The simple answer is yes, it’s likely. With there being so much talk about the concerning state of the UK’s finances – and since income tax, VAT and EE NI are confirmed as off the table – speculation has been rising about which taxes will be increased to generate the much-needed revenue. Labour has recently come under scrutiny after sidestepping direct questions about Employer’s National Insurance (ER NI). The current rate of ER NI is 13.8%, but we might see a rise sooner rather than later. Read our previous blog Warnings for Contractors Ahead of Autumn Budget 2024 for more details on this.
Will there be a change to pensions?
There are concerns that pension tax relief will be removed or amended for higher earners and those paying additional taxes who, at present, can receive up to 45% in pension tax relief. Some contractors could find themselves looking at reduced savings if a flat tax rate is introduced and their pension pots are taxed at higher rates.
How can I prepare ahead of budget day?
Being told to stay ahead of potential tax changes is all well and good, however, the last thing you want to do is make rash decisions based off rumours that could end up doing more harm than good. The best thing we could advise to do in the run-up to the budget is to start thinking about a longer-term strategy. That way, you’ll be more aware of upcoming changes that might affect your professional life and will have mapped out different options or routes to take in certain circumstances. For example, you may find it useful to start reviewing ways to maximise your pension contributions. Speaking to a trusted expert, such as a pensions or financial advisor, could be the way to go.
Got more questions?
You’re in the right place! We’ll be publishing more content ahead of budget day so make sure to check back on our website and follow us on socials for updates. In the meantime, you can get in touch with our team, and we’ll answer your questions as best we can.
