King’s Speech 2024: Discover What It Means for Small Businesses

by Acuaccounts | Jul 24, 2024 | accounting, kings speech, latest news, self assessment, tax, tax return

The recent King’s Speech, delivered by King Charles III on 17 July 2024, outlined the new Labour government’s legislative agenda for the coming year. While the speech covered a wide range of topics, several proposals have implications for small businesses and the self-employed.

Let’s delve into the details of these key areas:

National Wealth Fund Bill

The government plans to inject £7.3 billion of capital into the National Wealth Fund. 

This initiative aims to:

• Deploy funding through the UK Infrastructure Bank
• Expand the bank’s remit to catalyse private investment
• Generate £3 of private sector investment for every £1 it invests

For more information click here.

Budget Responsibility Bill

This bill introduces a ‘fiscal lock’, requiring any government making significant and permanent tax and spending changes to undergo an independent assessment by the Office for Budget Responsibility (OBR). 

For small businesses, this could mean:

• More predictable economic policies, aiding in long-term planning
• Increased market credibility and public trust in fiscal decisions
• Potentially slower implementation of major tax changes, allowing more time for businesses to adapt

For more information click here.

Pension Schemes Bill

This bill proposes several changes to pension schemes, including:

• Consolidation of small, deferred pension pots
• Ensuring value for money in pension schemes
• Requiring schemes to offer retirement products

Small business owners should be aware of these changes, both for their own retirement planning and for managing employee pension schemes.

For more information read the article or speak to our team.

Draft Audit Reform and Corporate Governance Bill

While primarily aimed at larger companies, this bill could have trickle-down effects on small businesses, especially those aspiring to grow. 

Key points include:

• Replacing the Financial Reporting Council with a new regulator
• Extending Public Interest Entity status to large private companies
• Removing unnecessary rules for smaller Public Interest Entities
• New powers to investigate and sanction company directors for serious financial reporting failures

More information here.

Planning and Infrastructure Bill

This bill aims to streamline the planning process for building homes and delivering major infrastructure projects. 

For small businesses in construction and related industries, this could mean:

• More opportunities for contracts and projects
• Potentially faster approval processes for development plans
• Alignment with industrial, energy, and transport strategies

Great British Energy Bill

The creation of a new, publicly-owned energy production company could impact small businesses through:

• Potential changes in energy pricing and availability
• New opportunities for businesses in the clean energy sector
• Possible partnerships between the public entity and private sector companies

Employment Rights and Skills

While not detailed in the additional information, the speech mentioned plans to reform employment rights and skills training.

This could include:

• Changes to flexible working arrangements
• Reforms to zero-hour contracts and fire-and-rehire practices
• Transformation of the Apprenticeship Levy into a Growth and Skills Levy

Small business owners should prepare for potential increases in employment costs and new obligations but also look for opportunities in workforce development.

EU Relationship Reset

The government’s intention to reset relationships with EU partners could have significant implications for small businesses engaged in international trade, potentially easing some of the post-Brexit challenges.

What’s Missing?

Despite these proposals, some key small business concerns were not directly addressed. The Federation of Small Businesses (FSB) noted that the government’s 105-page briefing document doesn’t mention ‘small business’ once. 

Notably absent were:

• Specific legislation to tackle late payments which is a significant issue for many small businesses
• Clear commitments to reduce the tax burden on small businesses
• Measures to help small employers adapt to the new employment rights package

Read the full FSB reaction here.

Looking Ahead

While the King’s Speech provides a roadmap for the government’s intentions, many details are yet to be clarified. Small business owners should keep an eye on the autumn budget for more concrete measures and potential addressing of concerns raised by small business representatives.

In the meantime, it’s advisable to start considering how these proposed changes might affect your operations. Speak to us at AcuAccounts to help you prepare for the evolving business landscape and identify challenges and opportunities in the coming year.

Remaining Tax Deadlines for 2024: 

Here are the key remaining tax deadlines for 2024, starting from July:

July 2024:

• 22 July 2024: Deadline for paying Class 1A National Insurance Contributions (applicable to employee benefits like private medical insurance)
• 31 July 2024: Second Income Tax and National Insurance payment on account deadline

October 2024:

• 5 October 2024: Deadline to register with HMRC if you became self-employed or started receiving income from property in the 2023/24 tax year
• 31 October 2024: Deadline for paper Self Assessment returns for the 2023/24 tax year

December 2024:

• 30 December 2024: Deadline for online submission of Self Assessment tax returns for HMRC to collect tax through PAYE tax codes (if less than £3,000 is owed)
• 31 December 2024: Deadline for filing your company’s annual accounts if you have a limited company with an accounting year end of 31 March

January 2025:

• 31 January 2025: Deadline for online Self Assessment tax returns for the 2023/24 tax year and for paying the tax bill for the 2023/24 tax year

VAT Return Deadlines: For VAT-registered businesses, returns are typically filed quarterly. The deadlines are one month and seven days after the end of each quarter.

For example:

• 7 August 2024 for the quarter ending 30 June 2024
• 7 November 2024 for the quarter ending 30 September 2024
• 7 February 2025 for the quarter ending 31 December 2024

AcuAccounts is committed to helping clients navigate the complexities of tax legislation, pensions, accounting, and more. We are here to assist you in understanding and implementing the changes outlined in the King’s Speech, as well as ensuring you meet all upcoming tax deadlines. 

Want to find out more? Get in touch at info@acuaccounts.com and book a consultation with our team. You can also call us directly on 0203 907 9027. Visit  https://www.acuaccounts.com/contact/ for all contact information.