Managing Principal Viewpoint
What a year!
Much has happened since our last Shipshape. A new government is in place, along with a new Chancellor. We also had a glorious summer of sports, including the Euros in football, the Olympics and the Paralympics, and Shipleys recently announced our merger with Moore Kingston Smith.
As we draw to the end of 2024, at least the political uncertainty that dominated the first half of the year has dissipated. Labour’s settling-in period has, however, brought drama on the economic front, and we now know there’s a “£22 billion black hole” in public finances to be filled.
Filling the hole
This led to a much-anticipated and challenging autumn Budget, which announced tax increases and spending cuts totalling £40 billion. Significant economic growth, which we’ve sorely missed in recent years, may now take longer to emerge. The rise in employers’ national insurance, frozen tax thresholds and the still challenging cost of living (to name a few) will undoubtedly eat into the confidence and ability of businesses and people to invest.
Silver linings
But, as we know from our clients, UK businesses and individuals are renowned for being resilient, resourceful and often entrepreneurial. Our Business Club members recently discussed the ingredients that help business growth and shared many helpful ideas and recommendations (see page 10).
There’s also been good news for our clients in the broadcast industry. Labour has confirmed that the new UK independent film tax credit and additional relief for visual effects (announced by the previous government) will still go ahead. See our overview on page 5.
Knowledge is key
In our Shipshape at the start of 2024, I talked about the importance of planning. That still holds true as we look ahead to 2025 and the rollout of Labour’s fiscal announcements.
On page 2 we’ve given an overview of key takeaways from the Budget. We’ve also gone into more detail about the implications of the inheritance tax, capital gains tax and non-dom tax status changes on pages 3 and 4. Our VAT specialists have discussed the introduction of VAT on school fees (page 6), and our payroll experts have signposted forthcoming changes for employers in payrolling benefits (also page 6).
There’s also an article on pages 8 and 9 with planning considerations as we approach the end of the tax year.
With all the fiscal changes, do remember that you’re not alone. Our teams of specialists are here to help – be that explaining how a change will affect your business or personal finance, advising on options open to you or helping you meet the compliance requirements and deadlines. Please do contact them.
Bolstering and broadening our support
This leads me to our exciting autumn announcement – our merger with Moore Kingston Smith. For some time, our senior team had contemplated how the firm could best support our clients in a rapidly changing world with its increasing challenges and complexity.
Becoming part of Moore Kingston Smith has now provided us with the infrastructure and resources to do so. By merging our strengths, solutions, sector knowledge and teams, we can bolster our offering and the many ways we support you. We are excited to bring you enhanced expertise and further opportunities.
You can learn more on page 7, which features an interview with Matt Meadows – the Managing Partner of Moore Kingston Smith – and I. Rest assured that it is very much ‘business as usual’, and the day-to-day Shipleys contacts you work with, along with the client experience, will remain. We are still firmly committed to helping our clients thrive.
Download your copy of Shipshape Winter 2024/5
As I draw this piece to a close, I’d like to thank you for your ongoing support. It’s through our strong, personal, long-lasting client and contact relationships that we have reached such an exciting milestone for Shipleys.
We look forward to supporting you in the year ahead, and on behalf of everyone at Shipleys, I wish you a very happy Christmas and an enjoyable and rewarding 2025.
Steve
Steve Foster, Managing Principal
Shipshape articles are intended to create awareness of issues and specific advice should be obtained before taking action, or refraining from taking action in relation to the topics covered. If you would like advice or further information, please speak to your usual Shipleys contact.
Copyright © Shipleys LLP 2024
Related Resources
Chancellor’s Budget Summary – October 2024
The new UK independent film tax credit
Going for growth
UK inheritance tax shake-up and planning for the future
Examining the impact of Labour’s capital gains tax changes
