Business Budget 2024 - DMT Solutions

Business Budget 2024

by BusinessFinanceNews

The Business Budget for Spring 2024 was announced by the UK government on the 6th March.

Here are the key announcements for businesses:

  • National Insurance – The main rate of Class 1 employee National Insurance Contributions (NICs) will be cut from 10% to 8%, taking effect from 6 April 2024. For the self-employed, the main rate of National Insurance will be cut to 6%
  • VAT registration threshold – The VAT registration threshold will be increased 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
  • Extension of the Recovery Loan Scheme (RLS) – The Recovery Loan Scheme has been renamed 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
  • VAT Retail Export Scheme – The Government is reviewing the Office for Budget Responsibility’s (OBR) findings on the impact of the removal of tax-free shopping and welcomes further submissions on this issue.
  • Consultation on extending full expensing to assets for leasing – Draft legislation on full expensing to assets for leasing will be published shortly. Full expensing will be extended to assets for leasing when fiscal conditions allow
  • Replacing Non-UK Domicile tax rules – This measure abolishes the remittance basis of taxation for non-UK domiciled individuals and replaces it with a residence-based regime. Individuals who opt into the new regime will not pay UK tax on any foreign income and gains arising in their first four years of tax residence, provided they have been non-tax residents for the last 10 years. This new regime will commence on 6 April 2025 and applies UK-wide
  • Film Studios Relief – Eligible film studios in England will receive a 40% reduction on gross business rates bills until 2034. The relief will be implemented as soon as possible, and bills will be backdated to 1 April 2024.
Business Budget 2024 - Cost Audit Banner - DMT Solutions
  • Expert advisory panel on R&D Tax Credits relief – HMRC will establish an expert advisory panel to support the administration of the R&D tax reliefs
  • Accelerated Planning Service – The Government is publishing a consultation on the proposed design of the new accelerated planning service as well as new measures to constrain the use of extension of time agreements and identifying local planning authorities who are using these excessively
  • Digital Planning – Building on work to digitise the planning system, a new pilot will use Artificial Intelligence to help speed up the development of local plans
  • Vaping Products Duty – A new duty on vaping products will be introduced from 1 October 2026, with registrations for the duty opening from 1 April 2026
  • Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibitions Tax Relief (MGETR) – From 1 April 2025, the rates of TTR, OTR and MGETR will be permanently set at 40% (for non-touring productions) and 45% for touring productions and all orchestra productions. The sunset clause for MGETR will be removed
  • Enhanced credit for UK independent film – A UK Independent Film Tax Credit will be introduced at 53% on qualifying film production expenditure. This enhanced Audio-Visual Expenditure Credit will be available for films with budgets under £15 million that meet the requirements of a new British Film Institute test
  • Additional tax relief for visual effects – The credit rate for visual effects costs in film and high-end TV will be increased to 39% from April 2025, and the 80% cap will be removed for qualifying expenditure for visual effects costs.
Business Budget 2024 - DMT Solutions
  • Air Passenger Duty (APD) rates – The 2025-26 APD rates for economy passengers will increase in line with forecast RPI, rounded to the nearest pound. Rates for those flying premium economy, business and first class and for private jet passengers will also increase by forecast RPI and will be further adjusted for recent high inflation to help maintain their real terms value
  • Housing in Barking and Canary Wharf – The Government is announcing investment of £124 million at Barking Riverside to unlock 7,200 homes. In addition, £118 million will be invested to accelerate delivery of the Canary Wharf scheme. This will deliver a life sciences hub, commercial and retail floor space, a healthcare diagnostic facility and up to 750 homes
  • Euston Housing Delivery Group – The Euston Housing Delivery Group will be established with £4 million to support plans to deliver up to 10,000 new homes
  • Abolition of Furnished Holiday Lettings tax regime – The Government will abolish the Furnished Holiday Lettings tax regime, taking effect from 6 April 2025
  • Capital Gains Tax: Higher rate cut for residential property – From 6 April 2024, the higher rate of Capital Gains Tax for residential property disposals will be cut from 28% to 24%
  • UK ISA – The Government Business Budget 2024 will create an additional Individual Savings Account (ISA) with a £5,000 allowance. This would be in addition to the £20,000 that can be subscribed into an ISA.
  • Artificial Intelligence (AI) Upskilling Fund Pilot – The Government is announcing a new £7.4 million AI Upskilling Fund pilot that aims to help SMEs develop the AI skills of the future
  • High-Income Child Benefit Charge (HICBC) reform – The HICBC threshold will be raised to £60,000 from April 2024. The rate at which HICBC is charged will also be halved so that Child Benefit is not fully withdrawn until individuals earn £80,000 or higher
  • PISCES – The Government Business Budget 2024 has published a consultation on a new Private Intermittent Securities and Capital Exchange System (PISCES). PISCES will be a new market that aims to support private companies to scale grow and boost the pipeline of future Initial Public Offerings (IPOs) in the UK
  • Additional pension reforms – The Government is also introducing new reporting requirements for Local Government Pension Scheme (LGPS) funds, and putting forward proposals that would require Defined Contribution (DC) default funds’ historic net investment returns.
  • Fuel duty – The main rates for fuel duties will be frozen, with the ‘temporary’ 5p cut extended until March 2025
  • Alcohol duty – Alcohol duty will be frozen from 1 August 2024 to 1 February 2025
  • Household Support Fund Extension – The Household Support Fund in England will be extended from April to September 2024

The full Government Business Budget 2024 can be found here.

Cybercrime - A Family's Story and Lessons Learned

Cybercrime: A Family’s Story and Lessons Learned

by BusinessNews

Cybercrime can affect anyone at any time.

My client Helen called me at 19:30 during the Christmas break, distraught and didn’t know which way to turn. Her grandson (Joe) whom she was looking after whilst her daughter (Chloe) was overseas, had received a message on the social media platform Discord claiming that her 12-year-old grandson had done some illegal activities online and would be reported to the police if they did not pay £300 in the next 20 minutes and that they had the personal and bank details of Chloe and were going to take a payment. 

As Joe was a minor and did not have access to £300 or a bank account, he panicked and told his grandmother to just pay the money. Thankfully Helen called me and after calming Helen down, speaking with Joe and carefully assessing the situation, we concluded that it was a scam and not to pay the scammers as Joe had done nothing illegal.

The fraudster brought up the payment history of a previous transaction Joe had done online and was going to start taking payments. They had shown Joe a copy of the transaction and had then proceeded to take money from Chloe’s account which is when Chloe called from her holiday saying her bank blocked a suspicious transaction from leaving her account.

Thankfully Chloe and her family averted becoming the victim of cybercrime by blocking her bank accounts and cards.

The crime was reported to both Action Fraud UK and CIFAS and Joe shut down his Discord account and watched several videos with his granny on being cyber smart and aware. 

Cybercrime Online - DMT Solutions

Helen’s frantic phone call during the Christmas break was a chilling reminder of how cybercrime can infiltrate our lives, even during moments of joy and family. 

Her grandson, Joe, became the target of a sophisticated scam on Discord, a platform seemingly meant for harmless gaming and chat. This isn’t just Helen’s story, it’s a cautionary tale for all families navigating the ever-evolving digital landscape.

The Bait and Switch:

  • Exploiting Emotions: The scammer cleverly targeted a grandmother’s love and concern for her grandchild, weaponising Joe’s age and vulnerability to create panic and pressure.
  • Time-Bound Terror: The 20-minute countdown was a calculated move to bypass rational thinking and force a hasty, emotional decision.
  • Double Threat: The alleged access to Chloe’s bank details added another layer of anxiety, creating a double whammy of financial and legal fear.

The Red Flags:

  • Outlandish Accusations: Claims of illegal activities against a 12-year-old, especially without specifics, are highly improbable.
  • Urgency and Pressure: Legitimate entities rarely employ scare tactics and tight deadlines.
  • Implausible Demands: Payment in 20 minutes, from a minor with no access to the funds, raises immediate suspicion.

The Defense Mechanisms:

  • Open Communication: Helen’s open communication with Joe allowed them to assess the situation calmly and collectively.
  • Seeking Help: Reaching out for advice and support from a trusted source, like DMT Solutions, proved crucial in avoiding the scam.
  • Knowledge is Power: Chloe’s alertness and quick action in blocking her accounts prevented financial loss.

Lessons for the Digital Age:

  • Education is Key: Equip children and adults alike with the knowledge to identify scams, understand red flags, and navigate the online world safely. Resources like Action Fraud UK and CIFAS offer valuable guidance.
  • Communication Matters: Open, honest conversations about online experiences are vital. Encourage children to share concerns without fear of judgment.
  • Staying Vigilant: Be wary of unsolicited messages, especially those making urgent demands or threats. Verify information and seek trusted advice before making any decisions.
  • Security Measures: Use strong passwords, enable two-factor authentication, and keep software updated to minimise vulnerabilities.
  • Report Suspicious Activity: Reporting scams to authorities like Action Fraud UK and CIFAS helps track and apprehend cybercriminals and prevent cybercrime.
Cybercrime Prevention - DMT Solutions

Helen’s story is a testament to the importance of vigilance, open communication, and knowledge in the face of cybercrime.

By sharing this experience and equipping ourselves with the tools to combat these threats, we can create a safer digital world for ourselves, our families, and our loved ones. 

Remember, even the most tech-savvy among us can fall prey to scams.

The key lies in awareness, education, and a healthy dose of scepticism.

Let’s stay vigilant, spread awareness, safeguard our loved ones, and make the online world a safer space for all!

Additional Resources:

Action Fraud UK: https://actionfraud.police.uk/

CIFAS: https://www.cifas.org.uk/

National Cyber Security Centre (UK): https://www.ncsc.gov.uk/

Cybersecurity & Infrastructure Security Agency (US): https://www.cisa.gov/

 

*The names have been changed to protect the identity of our clients.

Procurement Act Marks Historic Transformation For UK SMEs - DMT Solutions

Procurement Act Marks Historic Transformation for UK SMEs

by BusinessCost ReductionFinanceNewsProcurement

Today, we are thrilled to announce that the Procurement Act has officially received Royal Assent, marking a pivotal milestone in the government’s commitment to fostering lasting change and prosperity.

The Procurement Act, now enshrined in law, promises to bring about one of the most significant overhauls in the history of procurement regulations in the UK.

Its far-reaching implications will empower small businesses, creating a more equitable and inclusive business landscape for economic growth and development.

Business Buying Power- DMT Solutions

Key highlights of the Procurement Act include:

  1. Enhanced Opportunities: Small businesses will have unprecedented access to a wider array of procurement opportunities, enabling them to compete on a level playing field with larger corporations.
  2. Streamlined Processes: The Act will introduce streamlined and efficient procurement procedures, reducing bureaucratic hurdles and fostering a more dynamic marketplace.
  3. Economic Empowerment: The Act’s focus on inclusivity, paves the way for substantial economic empowerment, ensuring that small businesses can play a central role in shaping the country’s future.
  4. Long-term Prosperity: The Act aligns with the government’s commitment to making decisions that lead to sustained, positive change, driving the UK toward a brighter future.

We invite small business owners and entrepreneurs to embrace this historic change as an opportunity to propel their businesses to new heights.

The Procurement Act is a testament to the government’s dedication to fostering a thriving and resilient small business ecosystem.

If you would like to make your business more competitive and want to know more about the opportunities for small businesses, please visit https://dmtsolutions.co.uk/solutions/.

Have the recent changes in legislation changed your views on the Government and Ministers?