Issue #94 - What's on your Budget wishlist? 💼
Will the 2024 Autumn Statement be best for business? | How do small businesses impact the economy? | Corporation tax and your small business | 5 Businesses, 1 question | Tunes | Facts | More
Will the 2024 Autumn Statement be best for business? 📊
Welcome to Issue #94 of The Backbone - the fortnightly newsletter from Bionic.
The new Labour government will give its first Autumn Statement on Wednesday, October 30. This is an annual government update on the state of the economy. It also offers an update on the government’s taxation and spending plans.
Last year’s Autumn Budget and this year’s Spring Budget (oh yeah, there are two each year, and maybe even an emergency one if things get really bad) were a bit underwhelming for small business owners.
There were some tweaks to National Insurance Contributions (NICs) for employees and the self-employed (while employer contributions remained at 13.80%) and some rates relief for Retail, Hospitality and Leisure businesses. There was an increase in the VAT registration threshold and changes to Dividend Tax. Exciting stuff.
But a new government brings new hope (right?). After declaring that “Britain is open for business” to try and secure some major investment from private companies, Labour must surely have at least one eye on a business-friendly Budget.
So, what can we expect? Here are some of the forecasts we’ve found :
An increase in National Insurance Contributions (NICs) for employers. This is not ideal for small businesses as it’ll make employing staff more costly.
An increase in Capital Gains Tax. This means more tax is paid when business assets are sold. This can include land and buildings, fixtures and fittings, machinery, equipment, and more. There’s more info at GOV.UK
No change to Corporation Tax, Income Tax or VAT. Labour has said there’ll be no changes to these mainstream taxes, but we could see an announcement around tax relief or allowances. There could also be an announcement on a replacement for the current system of business rates.
Admittedly, there’s not much to get excited about there, but it’s mostly speculation so far and we’ll learn more as the end of the month approaches. As ever, we’ll have a special issue of The Backbone out shortly after the announcement, giving you a round-up of the bits that affect small businesses.
We hope the government realises there’s more to “being open for business” than getting billions in investment from blue chip corporations. There’s a big difference between what’s best for asset managers like BlackRock and what’s best for Britain’s backbone businesses.
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How do small businesses impact the economy? 🛍
The state of the UK economy is never far from the front pages. In the last few years, we've all felt the impact of Brexit, the pandemic, the energy price crisis, soaring inflation and the cost of living crisis. These events have affected personal and business finances, as well as the overall state of the economy.
Then there are things like the Liz Truss mini-budget (which caused panic in financial markets) and the government's 'fiscal rules' (a set of restrictions put in place by the government to constrain its own decisions around taxes and public spending).
But what impact does your business have on the economy? And how is the way your business operates shaped by the state of the economy? Let's take a look.
How does corporation tax affect your small business? 📈
Taxes are an inevitable part of all our lives, but it’s only when running your own business do you realise just how complicated things can get – income tax, VAT, business rates, and national insurance all need to be accounted for.
And, all being well, corporation tax is another one you’ll need to factor in. Our corporate tax guide explains everything you need to know, including why you should maybe be glad if you’re paying it (well, maybe not glad, but read on and you’ll get what we mean).
🗣 SHOUTOUT
#BionicBusinessStory - 5 businesses, 1 question 🤔
We love hearing all about how small business owners got to where they are. The stories of how they’ve built their business, the things that keep them awake at night, their biggest achievements, and how they cope when life feels like it’s going at 60 miles an hour. We asked five business owners one simple question, and here’s how they answered…
Bionic: What was the biggest struggle when setting up your business?
💐 “We’ve had some really tough times. We’ve been through two recessions and times where we really weren't sure if the shop could keep going. In the past, I've had to get extra jobs just to keep the business afloat.” Sue Colledge - Colledge’s Florist
🍰 “The biggest challenge I face is working from home with my children around. Although I love them being there to learn how I do what I do, I have to come up with little activities to keep them busy as tiny fondant models, sweets and big bowls of chocolate are incredibly tempting to little hands.” Heidi Kay - Handmade by Heidi
☕ “We had massive problems trying to buy the tea room in the beginning. No banks would help us out but my dad urged me to look into a 'Business Enterprise Fund.’ Jo Hunter - That Tea Room
🍩 “Covid was the biggest hurdle for us. We had to start doing home deliveries, then other challenges we’ve had have been just generally increasing production while we’re expanding and managing customers. Things like that.” Wade Smith - Doughnotts
🍦 “I came from being a primary school teacher to suddenly being given the keys and told ‘here's the business, off you go.’ I was massively stressed, I didn't have any clue. I was on the internet all the time, on Google, looking at forums. I joined networking groups and bought books.” Corrie Hill - Mrs Chill’s Ice Cream Parlour
📊 BUSINESS
Get your business costs sorted 💷
Bionic is the comparison site for your small business. We compare a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms, and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
🎧 LISTEN
Playlist 🎶
By the time we release our next issue, the clocks will have changed and Halloween will have passed. Autumn is very much upon us. Autumn en Violette is the perfect soundtrack for the shortening days and the descent into winter. Tracks by Dusty Springfield and Donovan are perfect for the spooky season. And The Clientele’s tune is a must for November 5th.
Podcast 🎙
Remember the January 6 attack on the US Capitol? Yeah, that was nearly four years ago! Series One of The Coming Storm examined how the US got to that point through conspiracy culture. Series Two picks up where the first left off and is definitely worth a listen as the US elections approach once more.
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🚫 STOP
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