Autumn Budget 2024

National insurance increases for employers announced in Budget: From April 2025, employers will pay national insurance contributions on an employee’s earnings above £5,000 at the rate of 15%. The employment allowance will be increased to £10,500 per year to help smaller businesses.

ICAEW welcomes increased funds for HMRC in Autumn Budget: HMRC has received additional investment, with its budget for 2024/25 increasing from £4.7bn to £5.2bn, and its initial budget for 2025/26 set at £5.8bn. However, HMRC is expected to make savings of £107m in 2025/26 from continuous improvement.

Budget makes changes to how the tax system is administered: The Budget included several announcements on how HMRC will tackle non-compliance in the tax system, as well as an important update on making tax digital for income tax self assessment (MTD ITSA).

CGT and SDLT rates increased in Budget: From 30 October 2024, the main rates of capital gains tax (CGT) will be increased to 18% and 24%. The 10% rate of CGT for disposals attracting business asset disposal relief will increase to 14% (from April 2025) and to 18% (from April 2026).

Autumn Budget 2024 confirms agents must register with HMRC: The government has made three proposals for raising standards in the tax advice market in response to the consultation published in March 2024.

Budget updates on manifesto commitments: The government has provided updates on some of the key measures included in the Labour Party’s general election manifesto, including the taxation of ‘non-doms’ and charging VAT on services provided by private schools.

Government publishes its plans for corporation tax: The government has set out its intentions for corporation tax for the next five years, delivering on its commitment to publish a business tax roadmap at the Autumn Budget.

Autumn Budget makes significant changes to inheritance tax: The government has announced that the inheritance tax nil rate band will be fixed for a further two years, business property relief and agricultural property relief will be reformed and the exemption for pensions will be removed.

Latest news

Changes to HMRC’s agent dedicated line: From 7 October 2024, there will be one combined agent dedicated line for self assessment (SA) and pay as you earn, and a new process for chasing SA repayments.

New HMRC MTD ITSA tool: HMRC has published a guidance tool that allows a taxpayer to check if they are required to comply with MTD ITSA.

Nine software products support MTD ITSA: FreeAgent and Hammock for landlords have joined the list of software products that are now ready for MTD ITSA.

HMRC turns the spotlight on GDPR provisions: In Spotlight 65, HMRC has alerted taxpayers to issues with provisions for potential general data protection regulation fines or civil claims.

Record number respond to ABAB tax survey: The Administrative Burdens Advisory Board’s annual survey suggests that most agents and businesses see no benefits to MTD ITSA, and that frustration with HMRC’s service levels is growing.

ICAEW helps to plot business tax roadmap: ICAEW welcomes the government’s commitment to publish a business tax roadmap and has set out its recommendations to the Exchequer Secretary in both a meeting and letter.

Agents asked to finalise 2022/23 tax returns: HMRC is writing to agents who have clients with self assessment tax returns for 2022/23 that still include provisional figures.

Firms need to confirm their HMRC agent codes: HMRC is cleaning up agent registrations and has emailed all agents asking them to provide details of their agent codes for self assessment, VAT and corporation tax. Firms must respond by 8 November 2024.

New process for PAYE job expense claims: From 14 October 2024, pay as you earn claims for tax relief for employment expenses must be made using form P87, with supporting evidence provided by post. The process for making a claim via self assessment is unchanged.

Panel supports UK re-domiciliation regime: The panel set up by the previous government to explore a possible UK re-domiciliation regime has outlined how the regime could work and the tax, accounting and insolvency legislation that may be needed.

HMRC tackles agent code confusion: Further information is now available to help agents respond to HMRC’s request to provide details of agent codes by 8 November 2024.

Member help sheets and guidance

New VAT guidance for private schools: HMRC has published guidance for private schools on the implications of charging VAT on fees, including if, when and how they must register for VAT.

ICAEW helps improve HMRC’s capital allowances guidance: Following a meeting at which HMRC set out seven areas of the capital allowances regime where its guidance could be improved, ICAEW has provided written comments on those areas and on the guidance generally.

The ups and downs of the VAT registration threshold: The VAT registration threshold increased to £90,000 in April 2024, but should it be higher? Or would the UK benefit from a lower threshold?

The complicated and costly world of VAT: Everyone knows UK VAT is complicated and, for taxable persons, costly to comply with. But why is the tax so complex, and why does it often impose onerous compliance costs?

ICAEW suggests better ways to reduce FTT’s costs: Proposals to reduce the number of written decisions published by the First-tier Tribunal, and to cut the application time limit, would not deliver the intended cost savings, says ICAEW.

Progressive VAT: is now the time?: Under a progressive tax system, wealthier individuals pay tax at a higher rate than those on lower incomes. Angela Bedi considers the merits of a progressive VAT and how it could be achieved.

How to deal with payroll changes: ICAEW’s Tax Faculty sets out the processes for employers to follow to avoid complications when changing payroll IDs, software provider or payroll agent.

Consultations

Economy explainers: e-invoicing: The UK government has announced plans to launch a consultation on e-invoicing to promote its wider use across businesses and government departments. ICAEW's experts explain what it is and its implications for businesses.

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