Budget 2024: Key Tax Changes That Will Impact Your Business | 10.CA

At 10.CA, we understand how crucial it is to stay informed about UK taxes and the upcoming budget changes. As the autumn budget 2024 approaches, our team of tax experts has been analysing anticipated tax rises and their potential impact on businesses. Let's explore the key tax measures and changes to capital gains that will affect your organisation.


The New Tax Landscape Under Labour

From Conservative Government to Labour Government

The transition from the previous government to the new Labour government marks a significant shift in the tax landscape. At the Labour Party conference, Chancellor Rachel Reeves outlined the first budget plans, demonstrating notable departures from the Conservative government's approach to tax revenues and economic growth.

Labour Manifesto Commitments

The Labour manifesto committed to several significant changes, and we're seeing these materialise in the draft legislation. Key focus areas include:

- Making tax digital initiatives

- Changes to business tax structures

- Modified approach to the tax system

- New frameworks for tax revenue generation


Corporation Tax and Business Rates

Cap Corporation Tax Measures

The decision to cap corporation tax rates reflects broader changes in the business tax roadmap. We're seeing:

- New thresholds for different business sizes

- Modified charitable rates relief provisions

- Enhanced capital allowances

- Adjusted employer national insurance contributions


Business Rates Reform

The approach to business rates shows significant evolution, with particular attention to:

- Changes affecting private schools

- Modified charitable rates relief

- New provisions for capital projects

- Enhanced support for economic growth

Business Rates Reform

Income Tax Changes and Fiscal Drag

Income Tax Thresholds

As incomes rise, the impact of fiscal drag becomes more pronounced. Key modifications include:

- New income tax rates

- Adjusted income tax relief provisions

- Modified tax-free allowances

- Changes to income tax thresholds

Tax-Free Considerations

Understanding what remains tax-free is crucial for personal and business planning. We're analysing:

- Tax-free cash options

- Pension contributions thresholds

- Employee national insurance adjustments

- Impact on private equity arrangements



Capital Gains Tax Reforms

Capital Gains Tax CGT Updates

Recent changes to capital gains tax represent a significant shift in policy. Notable aspects include:

- Modified treatment of carried interest

- New approaches to residential property

- Updated business asset disposal relief

- Changes to capital gains structures

Capital Gains Tax

Property and Investment Implications

For those holding residential property or making capital project investments, several key changes merit attention:

- Modified treatment of property disposals

- New investment incentives

- Updated capital allowances

- Enhanced relief options



Private Schools and Education Sector

Impact on Private School Fees

The budget introduces significant changes affecting private schools, including:

- Modifications to charitable rates relief

- New tax treatment of school fees

- Impact on private schools' financial planning

- Changes to tax relief options


Private School Fees

National Insurance and Employment Taxes

Employee and Employer Contributions

Significant modifications to national insurance include:

- Adjusted employer national insurance rates

- Modified employee national insurance structures

- Changes to national minimum wage implications

- New pension contributions frameworks



Making Tax Digital and Tax Compliance

Digital Tax Framework

The government's tax digital initiative continues to evolve with the following:

- Enhanced reporting requirements

- Modified compliance structures

- New digital tools implementation

- Updated tax digital guidelines


Digital Tax Framework

Pension and Retirement Planning

Pension Tax Relief

Important changes to pension arrangements include:

- Modified lifetime limit provisions

- New employer pension contribution rules

- Updated tax-free cash allowances

- Changes to pension contributions frameworks



Wealth and Inheritance Planning

Inheritance Tax Modifications

Notable changes to inheritance tax include:

- Updated agricultural property relief

- Modified wealth tax considerations

- New approaches to tax avoidance

- Enhanced reporting requirements


Energy and Environmental Taxation

Energy Profits Levy and Windfall Tax

The budget outlines significant changes to energy-related taxation:

- Modified energy profits levy structures

- Updated windfall tax provisions

- New environmental tax measures

- Changes to fuel duty rates


Economic Outlook and Future Planning

Budget Responsibility and Public Finances

The chief secretary to the Treasury emphasises:

- Focus on economic growth

- Management of public finances

- Implementation of spending cuts

- Attention to the tax gap


Impact of Fiscal Studies

Recent fiscal studies highlight:

- Lost tax revenue implications

- Effects of tax avoidance measures

- Influence on tax revenues

- Future tax landscape projections


What Does This Mean for Your Business?

Strategic Planning Requirements

We recommend focusing on:

1. Understanding how other taxes affect your operations

2. Planning for anticipated tax rises

3. Adapting to changes in tax revenue requirements

4. Preparing for the upcoming budget implementation


Investment and Growth Opportunities

The budget encourages investment through the following:

- Enhanced capital allowances

- Modified business tax frameworks

- New investment incentives

- Updated tax relief provisions


Labour Government's First Budget: Key Takeaways

Budget Day Implications

On budget day, we expect to see:

- Detailed tax measures implementation

- Specific spending cut outlines

- Modified tax system changes

- Updated business tax roadmap


Future Tax Landscape

Looking ahead, key considerations include:

- Impact of fiscal drag

- Changes to tax-free allowances

- Modified tax revenue structures

- Enhanced making tax digital requirements


How 10.CA Can Support Your Business

We're here to help you navigate these changes with:

- Expert tax planning advice

- Compliance support

- Strategic investment guidance

- Ongoing tax landscape monitoring


Conclusion

As these budget 2024 key tax changes begin to impact your business, having expert support becomes crucial. At 10.CA, we're committed to helping you understand and adapt to these modifications effectively.

Stay ahead of the upcoming budget changes - contact our team for personalised guidance on how these tax measures will affect your organisation.


Frequently Asked Questions About Budget 2024


  • How Will the Labour Government's First Budget Affect My Business Tax Obligations?

    We're seeing significant changes under the new Labour government compared to the previous government's approach. The main impacts include:

    • Modified corporation tax rates and thresholds
    • Changes to business rates and charitable rates relief
    • New tax digital requirements
    • Adjusted employer national insurance contributions
    • Enhanced capital allowances for investment

    Key consideration: The budget day will bring final confirmation of these tax measures, but early planning is essential.


  • What Are the Most Significant Changes to Capital Gains Tax in the Autumn Budget 2024?

    The changes to capital gains tax (CGT) are substantial, affecting both business and personal assets:

    • New treatment of capital gains tax CGT
    • Modified approach to residential property disposals
    • Updated business asset disposal relief provisions
    • Changes affecting carried interest for private equity
    • Revised treatment of other taxes related to capital gains

    Important note: The tax-free thresholds and rates are being adjusted, making professional guidance crucial for optimal tax planning.


  • How Will the New Tax System Affect Private Schools and School Fees?

    The Labour manifesto committed to significant changes affecting private schools:

    • Removal of charitable rates relief
    • New tax treatment of private school fees
    • Modified tax landscape for educational institutions
    • Changes to tax relief options
    • Impact on employer pension contributions for staff

    These changes represent a significant shift in the tax treatment of private schools and their operations.


  • What Are the Key Changes to Income Tax Rates and Tax-Free Allowances?

    As incomes rise, several key modifications are being implemented:

    • Adjusted income tax thresholds
    • Modified income tax relief provisions
    • Changes to tax-free cash allowances
    • A new approach to fiscal drag
    • Updated pension tax relief structures

    The chief secretary has indicated these changes aim to balance economic growth with fair tax revenue collection.


  • How Will Make Tax Digital and Tax Avoidance Measures Affect Business Operations?

    The government's focus on tax digital and reducing the tax gap includes:

    • Enhanced tax digital requirements
    • Stricter tax avoidance prevention measures
    • New reporting obligations for tax revenue
    • Modified lost tax revenue recovery processes
    • Updated compliance frameworks for business tax

    Worth noting: These changes are part of a broader business tax roadmap aimed at modernising the tax system.

Company tax returns and accounts have gone digital

By Charlie Flockhart • April 21, 2026
HMRC and Companies House have confirmed that from 1 April, all businesses must use compliant, commercial software to file their company’s tax returns. As of 31 March, the free joint online service, commonly known as the CATO portal, from these two Government bodies has been removed and you must now use software to file company tax returns to HMRC. For the time being, you will still be able to file annual accounts at Companies House using third-party software, WebFiling services or paper filing. The decision has been made to end this service as it is “outdated and no longer aligns with modern digital standards”, according to Companies House. This change is in line with the introduction of the Economic Crime and Corporate Transparency Act, which implemented “enhanced corporation tax requirements and changes to UK company law.” It also follows on from a major IT security breach at Companies House, identified in March 2026, that exposed the WebFiling system and allowed some users to potentially access and amend the details of other companies. Although the breach has now been resolved and security strengthened, it has raised concerns about the reliability of GOV.UK One Login service.  Can you still amend previous returns using the free service? HMRC and Companies House have confirmed that now that the free filing service has closed, company directors will have to use commercial tax software if they need to make changes to a previously submitted Corporation Tax return or refile a rejected return. From now onwards, any previously filed financial information will no longer be available in the system, as it has not been retained and will need to be entered again. HMRC has said that, for amendments, it will also be acceptable to send a paper return to the Corporation Tax Services office. If you have previously filed financial accounts with Companies House and you want to make changes or corrections, this will also need to be done via commercial software or by sending paper accounts to Companies House via post. Are there any exceptions to this new rule? Companies can file a paper Corporation Tax return only in limited circumstances, such as if they wish to submit it in Welsh or can demonstrate a valid, reasonable excuse to HMRC. Otherwise, returns must be filed online using commercial software. If you are affected by this change and need help choosing and utilising commercial software to complete your Corporation Tax return, please speak to our team.

Capital allowances - New rules for a new tax year

By Charlie Flockhart • April 21, 2026
Capital allowances continue to provide an effective method for businesses to reduce their tax bills, by providing incentives for investment in eligible expenditure – typically plant and machinery. Historically, these reliefs have been subject to change and the 2026/27 tax year is no different, as the Government moves to alter two key reliefs – Writing Down Allowance (WDA) and a new First-Year Allowance (FYA).  Reduction of the Writing Down Allowance The WDA will be reduced from 18 per cent to 14 per cent on the main pool of qualifying plant and machinery assets. This change has been introduced on two different dates, starting with companies subject to Corporation Tax on 1 April and followed shortly thereafter by those subject to Income Tax, such as sole traders and partnerships, from 6 April. Businesses with large brought forward main pool expenditures are expected to lose the most from the reduction in the main rate of WDA. In the long-term, the change may also reduce incentives for investment in second-hand assets and cars, which benefited under the previous rules. The new First-Year Allowance To offset some of the impact of the reduction in WDA, a new 40 per cent FYA on main rate expenditure, primarily still covering plant and machinery, will now be available. This new FYA is intended to encourage investment in areas where other FYAs don’t allow, in particular, assets bought by unincorporated businesses and leases. Sole traders and partnerships will, for the first time, be able to get additional support at the point of investment, which means that more businesses will be able to reduce their tax bill in the same year as their investment. This is expected to give a quick cashflow boost to those affected and provide additional support for future investments. However, it is important to note that this FYA does not support investment in second-hand assets, cars or leased assets in other countries. Finally, the Government has also confirmed that small business owners will continue to benefit from tax relief on electric vehicles, as the 100 per cent FYA for zero-emission vehicles and charge points has been extended until 31 March 2027 for Corporation Tax and 5 April 2027 for Income Tax. This gives businesses greater certainty when planning ahead, while also providing a strong financial incentive to invest by reducing tax bills upfront. Want to make more of capital allowances? If you think you may be eligible for capital allowances, either due to the changes outlined in this article or more generally, then it is important that you claim the tax relief available to you. If you would like help reviewing the current capital allowances that your business can claim, please get in touch.

Government abolishes work-from-home relief

By Charlie Flockhart • April 21, 2026
Directors and employees claiming work-from-home tax relief will no longer be able to claim it from the start of the new tax year – 6 April 2026. Why is this relief being taken away? The Chancellor announced the removal of the work-from-home relief as part of her latest Autumn Budget. The main reasoning given for the abolition is that it will support the nation’s deficit reduction. HMRC has also said that it no longer believes it is fit for purpose or easy to police. Who could claim work-from-home relief? Work-from-home relief has been utilised by homeworkers since the early 2000s, helping them offset some of the costs of heating, lighting, broadband and other home-office expenses required to complete their jobs. The relief allowed employees and directors to claim a flat rate of £6 per week or a deduction for actual costs. However, those who do not claim the flat fee were required to provide evidence of the exact costs, such as an invoice or bill. Eligibility for the relief only applied to individuals who had no other choice but to work from home. For instance, where the business did not have an office or the daily commute was not feasible. Individuals who simply preferred to work from home did not qualify. Is there any relief still available for home workers? The only remaining tax-free support will be reimbursements made directly by employers. This applies only where the payments relate to demonstrated additional household costs and where the costs are incurred wholly, exclusively and necessarily for employment duties. For anyone still claiming work-from-home relief, it is worth reviewing your position now to understand how this abolishment will impact your take-home pay.