November Bulletin 2024
Welcome to our November Bulletin!
As the year draws closer to its end, November presents a crucial time for businesses and individuals alike to prepare for the upcoming tax season and finalise their financial goals.
This month's ABMV tax bulletin we will be covering:
Change to Employment Allowance Threshold
MTD for Income Tax confirmed for 2026
Base rate falls
New prompt payment code
Providing tax-free gym workouts for your workers
New scam APP reimbursement rules
2023/24 Personal Tax Works
Charity News - Movember
Change to Employment Allowance Threshold
The budget has removed the previous £100,000 eligibility threshold, allowing more employers to benefit from the allowance. This change is particularly impactful for eligible businesses that were previously excluded from claiming the allowance due to their higher National Insurance liabilities.
MTD for Income Tax confirmed for 2026
The government’s commitment to Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) has been highlighted as HMRC sets to move its tax operations onto a new technology platform.
MTD for ITSA is set to replace the current Self-Assessment system from April 2026, for all sole traders and landlords who have a total gross income of over £50,000; and from April 2027 for all sole traders and landlords who have a total gross income of over £30,000.
As a client of ABMV from February 2025, you will be receiving a personalised MTD for ITSA review for everything you and your business need to do in preparation for April 2026.
Base Rate Falls
On November 7, 2024, the Bank of England's base rate fell by 0.25% to 4.75%.
The base rate reduction was made following a number of factors, including:
Inflation: Inflation fell to 1.7% in September 2024, which is the lowest it's been since April 2021.
Market expectations: The markets had predicted a rate cut, as keeping rates high could negatively impact businesses and households.
Wage growth: The reduction in the base rate is also a response to lower wage growth
New Fair Payment Code
Struggling with late payments? You’re not alone!
The Small Business Commissioner is to launch a new Fair Payment Code later in 2024 rewarding businesses for paying suppliers quickly and treating them fairly.
The Fair Payment Code will replace the existing Prompt Payment Code and include fair payment principles and new Gold, Silver, and Bronze award categories.
Gold – For companies paying 95% of their suppliers within 30 days
Silver – For companies paying 95% of their small business suppliers within 30 days and all other suppliers within 60 days.
Bronze – For companies paying 95% of suppliers within 60 days.
Providing tax-free gym workouts for your workers
Your workforce is reaching that age when doctors suggest laying off the bacon sandwiches and taking more, or at least some, exercise. How can you help your employees become healthier via tax-efficient gym facilities?
If your business pays for gym membership for employees (including directors) it can claim a tax deduction for the expense. This normally counts as a taxable benefit for your employees, with a Class 1A NI cost for your business equal to 15% of the cost.
The tax and Class 1A NI costs will not be relevant by:
creating a gym at your business premises
or a gym at separate non-domestic premises.
paying a public gym for the exclusive use of the facilities for your employees at certain times.
You can reduce the cost of the first option by collaborating with other employers.
ABMV Company Update
We have introduced the ability to ePay your invoice through the new ABMV website and/or via the ePay link on your individual invoice. Paying your invoice couldn’t be easier.
If you have any questions or would like to learn more about how we can help you with your accounting and business needs, please don’t hesitate to contact us. Our team of experts is always ready to assist you with any queries you may have.
