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Autumn Budget 2024 – what does it mean for virtual assistants?

Budget 2024

The UK Autumn Budget 2024 has introduced several key changes for small businesses that employ and those who are registered businesses:

– Increased Employment Costs: Employers will see higher National Insurance Contributions, and the National Minimum Wage is set to rise to £12.21 in April 2025, pushing up payroll expenses.

Dividend Tax Rise: Business owners who receive income through dividends will face increased taxes, potentially reducing their returns.

– Corporation Tax Cap: Labour has confirmed it will cap corporation tax at 25% for the rest of this parliament, providing some stability in tax on profits.

– Few New Investment Incentives: The budget offers limited new government support for investments in technology or green upgrades, meaning businesses may need to fund these improvements themselves.

In summary, while the cap on corporation tax offers some relief, rising costs for wages, fuel, dividend taxes and other areas will add financial pressure for small businesses.

In the past, we have seen a particular uptick in work outsourced to virtual assistants after a budget that affects employment costs, which is great for the industry. However, we would urge caution when marketing to this audience in the aftermath of this budget and exercise your due diligence when taking on work from those who would have otherwise employed staff.

See also  Marketing Friday for Virtual Assistants:

Firstly, there are a lot of very concerned, upset and stressed employers and business owners out there right now; it’s a hard time, so be gentle and sensitive with your marketing.

Secondly, ensure that any work you are not taking on is placing you and your client inside the IR35 regulations. You can find out more about that here:

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