What should we expect for businesses in 2024?

With the first month of 2024 nearly complete, we have seen the business world kick back into gear following the festive shut-down.

Here at Ellis & Co, we have spent the past month supporting clients in planning for the coming year and getting their business ready for any changes that will be coming their way. So, what will 2024 hold for businesses? We take a look below:

Tax changes

There are a number of tax changes on the horizon that businesses need to be aware of, these include:

• Class 4 National Insurance contribution rate will be reduced in the 2024-25 financial year, going from 9 to 8%
• Class 2 National Insurance contributions are set to be abolished from April 2024
• The 2024-25 tax year will see basis period reform come into force, which may change how and when your business reports its profit and loss
• The ‘side hustle’ tax came into effect on 1^st January 2024, read our article on this here.

Cost of living

Rising costs and energy bills have been a topic of great uncertainty and worry both for individuals and businesses; with an election happening at the latest January 2025, we expect these issues to be debated heavily during the campaigning process.

A survey carried out by Simply Business on what small business owners believe that the government should be supporting with found that 34% want increased funding to support energy payments, whilst 66% are looking for tax incentives and breaks.

Increase in new businesses

Since the pandemic there has been a remarkable rise in the number of businesses being established as people seek the freedom and flexibility of running their own company. And whilst the ‘side hustle’ is still very much rising, particularly amongst young people, we can expect to see these new businesses continue to increase in 2024.

Will you be looking to start a business in 2024? The Ellis & Co team are on hand to support business start-ups by providing expert tax advice, guidance on funding, introductions to a strong business network and, of course, a dedicated accountant.

Speak to our team today to find out more about our services!