Tue 19 / 11 / 24
Will the Budget stifle future innovation or boost growth in Sussex?
Changes to employer national insurance (NI) announced in the Budget will add over £900 in business costs annually to the average £33,000 wage in the Brighton and Hove area, according to Sussex and South East accountancy firm Carpenter Box.
Speaking at a Budget briefing for local business leaders at the Sussex County Cricket ground, Stuart Noakes, Head of Tax at Carpenter Box, said the Budget was “big on spending, big on tax and big on borrowing.”
He said that while employment allowances would increase for the smallest employers, those business owners impacted by higher NI rates from April 2025 might want to consider offering their staff options beyond the scope of NI, such as electric vehicle packages, cycle to work schemes or higher pension contributions.
“My message to employers is to think creatively about how they can remunerate employees by providing valuable workplace benefits which at the same time help mitigate the costs associated with the NI changes,” said Stuart.
Stuart was speaking alongside Roy Thompson, Partner at Carpenter Box Financial Advisers.
Roy Thompson said the widening of the scope of inheritance tax from April 2027 to include defined contribution pension schemes, would likely encourage families to adopt more of a group approach to asset and wealth planning, sharing information and looking to redistribute money down the family tree. The Budget announcements will also encourage individuals to seek alternative investment vehicles offering tax advantages. This may include the use of Trusts and investment in assets that qualify for inheritance tax exemptions.
For further information about the Budget impact on businesses and individuals, visit the Carpenter Box Budget Hub
Photo (l-r): Stuart Noakes (Carpenter Box) and Roy Thompson (Carpenter Box Financial Advisers).