Autumn Budget 2024 : Key Points

On Thursday 31st the UK Chancellor Rachel Reeves MP delivered the Labour government’s Budget emphasising measures to address financial deficits, drive growth and increase funding for public services. She confirmed that this Budget represents a tax raise of £40 billion.

At ADVANCE we always look ahead and although The Budget always delivers measures without the full detail, we are confident we will be a provider of choice for our agency partners over the coming weeks, months and years.

PAYE responsibilities

• The Government had already confirmed they are looking to tackle non-compliance in the umbrella company market, and this was confirmed again yesterday. The government will set out further details in due course.  They have confirmed The Government recognises the positive role that a compliant and well-managed umbrella company can play in the temporary labour market.
  
  
• From April 2026, The Government will legislate to change responsibilities to account for Pay as You Earn (PAYE) where an umbrella company is within the supply chain. It is unclear at the moment how this will work in practice as the information released is somewhat confusing and contradictory.
  
  
• Our advisers believe that, in reality, nothing will change other than the agency being liable for any shortfall in PAYE submitted. Obviously, it is and will be even more important that agencies carry out due diligence on their Umbrella providers.
  
  
• Earlier this year, ADVANCE gained SafeRec certification, which means our compliance with HMRC is checked on a weekly and monthly basis. A monthly report is then issued to you confirming the outcome of all due diligence checks. This includes our PAYE responsibilities from the initial deductions for each employee through to evidence that our liability payments have been paid to HMRC.
  
  
• Things are very much in their infancy, and we expect further clarification over the coming months. We will of course provide further updates in due course.
  
  
• ADVANCE, with our advisors, are best placed to ensure we are ahead of any confirmed changes ensuring we provide you all the highest levels of compliance with the tightest controls and real time reporting. We will be working with the FCSA, and our advisors to navigate all the detail required to ensure we provide you with every level of comfort. 
  
  
• The FCSA are also working closely with The Government. They recognise the work the FCSA do and want compliant umbrella companies to flourish.  The FCSA will be working with REC, APSCo and key advisors to help shape the legislation over the coming months.  We will keep you updated.

Other key budget measures:

• National Minimum Wage increased by 6.7% to £12.21; 18-20-year-olds receive a 16.3% increase to £10/hr
• National Insurance Contributions for employers will increase by 1.2% to 15% from April 2025. Threshold lowered from £9,100 to £5,000
• Employment Allowance raised to £10,500
• Non-dom tax regime abolished from 5 April 2025
• CGT rates increased from 10% to 18% and from 20% to 24%, from today. PE carried interest rate increased to 32% from 5 April 2025
• IHT thresholds frozen until 2030, but AR and BR restricted significantly from 2026. Inherited pensions tax from 2027
• Windfall tax on oil and gas profits to increase to 38% from 1 November 2024
• Corporate Tax Roadmap published
• VAT introduced on private school fees from January 2025
• No extension of the freeze in income tax and NIC thresholds for individuals
• Business Rates relief changes in 2025 and 2026 but reliefs aimed at retail hospitality and leisure businesses
• Fuel duty frozen

If you would like to discuss these points in more detail, please do not hesitate to contact our team on 01244 564 564. We will continue to provide key industry updates and insight, but if there is a specific topic you'd like us to address please let us know.