Independent financial adviser, Mandy Crawford, discusses the changes to SMEs discussed in the 2024 Spring Budget.
Chancellor Jeremy Hunt’s commitment in the Spring Budget 2024, he said, was to support Small and Medium Enterprises (SMEs) in the UK to build an economy that fosters a balanced and thriving business ecosystem.
The Budget outlined a number of measures aimed at providing financial relief and promoting growth among these businesses. Mr Hunt announced these proposals, which reflect the government’s strategy to bolster economic growth by empowering SMEs and recognising their crucial role in the UK.
Extension of the Recovery Loan Scheme (RLS)
The Recovery Loan Scheme has been renamed as the Growth Guarantee Scheme and extended until the end of March 2026. The scheme offers a 70% government guarantee on loans to SMEs of up to £2 million in Great Britain, and £1 million in Northern Ireland.
HMRC guidance on retaining tax deductibility
HMRC has published new guidance around the tax deductibility of training costs for sole traders and the self-employed. This guidance ensures that updating existing skills, and maintaining pace with technological advancements and changes in industry practices, are allowable costs when calculating taxable profits.
VAT registration threshold: increase to £90,000
The government will increase the VAT registration threshold from £85,000 to £90,000, and the deregistration threshold from £83,000 to £88,000, freezing them at these levels. These changes will apply from 1 April 2024.
Financial promotion exemptions
The government will legislate to reinstate the previous eligibility criteria to qualify as a high net-worth or sophisticated investor. The government will carry out further work to review the scope of the exemptions.
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THIS ARTICLE REPRESENTS THE VIEWS OF THE ADVISER AND DOES NOT CONSTITUTE AS FINANCIAL ADVICE.
